Question: 1.) A firm has two substitutable inputs (Worker Type A and Worker Type B) for its finished goods units. Typically the firm uses 2 hours
1.) A firm has two substitutable inputs (Worker Type A and Worker Type B) for its finished goods units. Typically the firm uses 2 hours of Worker Type A for every 3 hours of Worker Type B. The firm produces 10 finished goods for every 5 hours of labor.
- Worker A standard price is $25.00 per hour
- Worker B standard price is $16.00 per hour
- Worker A actual price is $30.00 per hour
- Worker B actual price is $20.00 per hour
This period, the firm instead actually used 6,000 hours of Worker Type A and 4,000 hours of Worker B (producing 20,000 units of finished goods).
What is the firm's mix variance for this product this period? NOTE: Round answer to the nearest cent.
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