Question
A firm has two substitutable labor inputs (Worker Type A and Worker Type B) for its finished goods units. Typically the firm uses 4 hours
A firm has two substitutable labor inputs (Worker Type A and Worker Type B) for its finished goods units. Typically the firm uses 4 hours of Worker Type A for every 3 hours of Worker Type B. The firm produces 10 finished goods units for every 7 total hours of labor.
Worker A standard price is $15.00 per hour
Worker B standard price is $20.00 per hour
Worker A actual price is $13.00 per hour
Worker B actual price is $19.00 per hour
This period, the firm instead actually used 18,000 hours of Worker Type A and 17,000 hours of Worker B (producing 50,000 units of finished goods).
What is the firm's mix variance for this product this period (round to nearest cent if necessary)?
Group of answer choices
$10,000 unfavorable
$12,000 favorable
$10,000 favorable
$12,000 unfavorable
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