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: 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)