Figure 18-4
Regis Ltd. uses two materials in the production of its product. The materials, X and Y, have the following standards: $\begin{array}{cccc}
\text { Material } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \
\mathrm{X} & 3,500 \text { units } & £ 1.00 \text { per unit } & £ 3,500 \
\mathrm{Y} & 1,500 \text { units } & 3.00 \text { per unit } & £ 4,500\
\text { Yield }& 4,000 \text { units }
\end{array}$ During April, the following actual production information was provided: $\begin{array}{cc}
\text { Material } & \text { Actual Mix } \
\mathrm{X} & 30,000 \text { units } \
\mathrm{Y} & 20,000 \text { units } \
& \
\text { Yield } & 36,000 \text { units }
\end{array}$
-Refer to Figure 18-4. What is the materials mix variance?
A)£5,000 (F)
B)£10,000 (U)
C)£10,000 (F)
D)£15,000 (F)

Question

Quizplus · Accepted Answer

The materials mix variance is calculated by comparing the actual mix to the standard mix, priced at the standard cost. The actual mix is 30,000 units of X and 20,000 units of Y, while the standard mix is 3,500 units of X and 1,500 units of Y. The variance is unfavorable (U) because the actual mix deviates from the standard mix, leading to higher costs.

Figure 18-4 Regis Ltd During April, the Following Actual Production Information Was Provided

Figure 18-4
Regis Ltd During April, the Following Actual Production Information Was Provided