Answer:
(1) Material usage variance for X: 1,500 (Favorable)
(2) Material usage variance for Y: -19,500 (Adverse)
Explanation:
Material usage variance for X:
Standard Mix for actual Yield:
= (Standard mix of material X ÷ Yield) × Yield actual mix
= (3,500 ÷ 4,000) × 36,000
= 31,500
Material Usage Variance:
= (Standard Mix for actual Yield- Actual Mix) × Standard unit price
= (31,500-30,000) × $1
= 1,500 (Favorable)
Material usage variance for Y:
Standard Mix for actual Yield:
= (Standard mix of material Y ÷ Yield) × Yield actual mix
= (1,500 ÷ 4,000) × 36,000
= 13,500
Material Usage Variance:
= (Standard Mix for actual Yield- Actual Mix) × Standard unit price
= (13,500 - 20,000) × $3
= -19,500 (Adverse)
Total = (19,500) + 1,500
= (18,000) [Adverse]
