Answer:
Materials mix variance: $4,500
Explanation:
Materials mix variance = Actual input at individual standard materials costs – Actual input at weighted average of standard materials cost
Actual Input at individual standard material cost:
Material L: 15,000 units x $0.50 = $7,500
Material M: 10,000 units x $1.50 = $15,000
Total actual input at individual standard material cost: $22,500
Actual input at weighted average of standard materials cost:
Material Standard mix at standard unit price / Yield: $2,000 / 2,000 units = $1
Actual Input at standard material cost: 18,000 units x $1 = $18,000
Materials mix variance: $22,500 - $18,000 = $4,500