Artigas Enterprises Uses Two Materials in the Production of Its

Multiple Choice

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

$\text { During January, the following actual production information was provided: }$

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

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