The Following Information Is Provided About Three Materials Utilized in the Production

The following information is provided about three materials utilized in the production of a product: Material Standard Mix Standard Unit Price Standard Cost
X 1,250 units $3.00 per unit $3,750
Y 750 units 5.00 per unit $3,750
Z 500 units 4.00 per unit $2,000
Yield 2,250 units
During May, the following actual production information was provided:
Material Actual Mix
X 10,000 units
Y 5,000 units
Z 2,500 units
Yield 15,000 units
Calculate the Material mix variance.

A) $1,500(U)
B) $1,500(F)
C) $1,250(U)
D) $1,250(F)

Correct Answer:

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