Artigas Enterprises Uses Two Materials in the Production of Its

question 14

Multiple Choice

Artigas Enterprises uses two materials in the production of its product. The materials, L and M, have the following standards: $\begin{array}{lrrr}\text { Material } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \\\mathrm{L} & 1,750 \text { units } & \$ 0.50 \text { per unit } & \$ 875 \\\mathrm{M} & 750 \text { units } & 1.50 \text { per unit } & \$ 1,125\\\text { Yield }&2,000\text { units }\end{array}$

$\text { During January, the following actual production information was provided: }$

$\begin{array}{ll}\text { Material }&\text { Actual Mix }\\L & 15,000 \text { units } \\M& 10,000 \text { units } \\\text { Yield } & 18,000 \text { units }\end{array}$ What is the materials yield variance?

• A)$2,500 (U)
• B)$2,000 (U)
• C)$2,500 (F)
• D)$2,000 (F)

---

Definitions:

Remaining Firms

Businesses that continue to operate in a market after others have exited, often due to competitive advantages or niches.

Invisible Hand

A metaphor introduced by Adam Smith to describe how individual self-interest in a free-market economy leads to economic well-being and efficiency as if by an invisible hand guiding them.

Private Interests

Interests or goals that are pursued by individuals or entities for their personal or organizational benefit, rather than for the public good.

Social Interests

The collective welfare or well-being of a community or society as a whole.