Artigas Enterprises Uses Two Materials in the Production of Its

question 61

Multiple Choice

Artigas Enterprises uses two materials in the production of its product. The materials, L and M, have the following standards: During January, the following actual production information was provided:
Material Actual Mix
L 15,000 units
M 10,000 units
Yield 18,000 units
What is the materials mix variance?

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

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Definitions:

Finished Goods Inventory

The inventory of completed products that are ready to be sold.

Beginning of Year

The start of a calendar or fiscal year, commonly used as a reference point for financial and accounting purposes.

Direct Material

Raw materials that are directly traceable to the production of a specific good or service.

Purchased

Refers to items or services that have been bought by a company from outside suppliers.