Question

Material Mix Variance $=$ Standard Cost of Standard Mix $-$ _____________.

• A. Actual Cost of Actual Mix
• B. Actual Cost of Standard Mix
• C. Standard Cost of Actual Mix
• D. Standard Cost of Budgeted Mix

Answer 1

Answer: (C)

Standard Cost of Actual Mix

Material mix variance is arises due to change of consumption of material mix during the production process.

Material mix variance can be calculated by comparing the standard cost of standard mix and standard cost of actual mix.