A standard unit of product contains two materials, P and Q. The standard direct materials cost is:
$
Material P 0.1 kg at $8 per kg 0.8
Material Q 0.3 kg at $4 per kg 1.2
Total direct material cost 2.0
Management can control the mix of the materials and so, in standard costing variance reports, direct materials variances are reported as mix and yield variances.
In the period just ended, 45,000 units of finished products were made. They used 6,900 kg of Material P, which cost $7 per kg, and 12,600 kg of Material Q, which cost $5 per kg.
What was the adverse direct materials yield variance?
$ ________
