Final answer:
The materials yield variance is unfavorable if more of the more expensive input is used than expected. The materials usage variance includes both materials mix and yield variances, and standard yield is based on efficiency benchmarks, not simply the ratio of inputs to outputs. Variable costs, including labor and raw materials, are crucial in managing production costs and optimizing percent yields.
Step-by-step explanation:
The correct statement regarding the materials yield variance is: If relatively more of the more expensive input is used, the materials yield variance is unfavorable.
This is because material yield variance measures the difference between the expected amount of material needed to produce a certain amount of product and the actual amount used. If more expensive materials are used than expected, this increases the variable costs tied to the production, leading to an unfavorable variance.
The materials usage variance is indeed composed of the materials mix variance and the materials yield variance. The materials mix variance analyses the difference in cost due to the proportion in which different materials are used, while the yield variance examines the total amount of materials used compared to what was expected.
The standard yield is not calculated by total inputs divided by output; rather, it's often based on established benchmarks or historical data that indicate how much input is required for a certain amount of output under efficient operations.
Understanding variable costs, as they relate to labor and raw materials, is critical in managing and analyzing production efficiency. Variable costs fluctuate with production output.
Significant efforts are often made to optimize variable inputs, and thus variable costs, in order to achieve better percent yields in the production of goods, especially in chemical manufacturing where the percent yield can greatly impact the cost and waste of reactants.