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VARIANCES
Where is this question from?
The one I have found asks for the mix
Actual usage in standard proportions $
D = 4,000 litres at $9 per litre = 36,000
E = 3,500 litres at $5 per litre = 17,500
F= 2,500 litres at $2 per litre = 5,000
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10,000 litres 58,500
Actual usage in actual proportions
D = 4,300 litres at $9 per litre 38,700
E = 3,600 litres at $5 per litre 18,000
F = 2,100 litres at $2 per litre 4,200
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60,900
Mix variance is 58,500 – 60,900 = $2,400 Adverse A
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