Artigas Enterprises Uses Two Materials in the Production of Its

question 101

Multiple Choice

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

During January, the following actual production information was provided:

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

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

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