Figure 18-4
Regis Ltd During April, the Following Actual Production Information Was Provided

question 4

Multiple Choice

Figure 18-4
Regis Ltd. uses two materials in the production of its product. The materials, X and Y, have the following standards: $\begin{array}{cccc}\text { Material } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \\\mathrm{X} & 3,500 \text { units } & £ 1.00 \text { per unit } & £ 3,500 \\\mathrm{Y} & 1,500 \text { units } & 3.00 \text { per unit } & £ 4,500\\\text { Yield }& 4,000 \text { units }\end{array}$ During April, the following actual production information was provided: $\begin{array}{cc}\text { Material } & \text { Actual Mix } \\\mathrm{X} & 30,000 \text { units } \\\mathrm{Y} & 20,000 \text { units } \\& \\\text { Yield } & 36,000 \text { units }\end{array}$
-Refer to Figure 18-4. What is the materials yield variance?

• A)£4,000 (F)
• B)£8,000 (F)
• C)£8,000 (U)
• D)£9,000 (U)

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Definitions:

High Unemployment

A situation in an economy where the unemployment rate is significantly higher than the historical average.

High Inflation

High inflation is a condition where the general price level of goods and services in an economy rises rapidly over a period, eroding purchasing power.

U.S. Economy

The economic system of the United States characterized by a mixed economy with both private and public enterprises contributing to the gross domestic product (GDP).

Great Depression

A severe worldwide economic downturn that took place during the 1930s, characterized by high unemployment rates and significant declines in economic activity.