Artigas Enterprises Uses Two Materials in the Production of Its

question 9

Multiple Choice

Artigas Enterprises uses two materials in the production of its product. The materials, L and M, have the following standards: Material Standard Mix Standard Unit Price Standard Cost
L 1,750 units $0.50 per unit $ 875
M 750 units 1.50 per unit $1,125
Yield 2,000 units
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 yield variance?

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

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Definitions:

Federal Mandate

A requirement or order from the federal government that state or local governments, or private parties must follow, often with accompanying funds.

Income Taxes

Taxes levied by governments on individuals or businesses based on their net income or profit.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded, resulting in market stability.