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Business, 19.07.2021 15:50 20jhutchinson

A company makes a product using two materials, one of which is interchangeable with a third material. The standards for producing one 200-pound batch are presented below. The last 200-pound batch was produced using 140 pounds of M and 120 pounds of O. The price of M was $0.33 per pound and the actual price of O was $0.40. The price of M was $0.03 per pound and the actual price of O was $0.10. Material Standard Quantity (lbs) LBS StandardCost/lb. Total Cost
O 0   $0.40   $0.00  
H 110   0.38   41.80  
M 150   0.32   48.00  
260   89.8

Is the material yield variance favorable or unfavorable? A) Favorable. B) Unfavorable.

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