10 MA - Case standard costing and variance analysis (CH18) RED Corporation produces a popular drink "Fizz" from a mixture of four types of juices: pear, apple, cherry and orange. According to the standard variable costing system RED operates, all four juices are used in equal proportions to produce 1 litre of finished product, Fizz. The standard prices per litre of each juice are as follows: o Pear: 0.2 $/liter . Apple: 0.1 $/liter o Cherry: 0.4 $/liter o Orange: 0.5 $/liter Normal production capacity is 100,000 litres of Fizz per year. RED's standard requires 1.2 litre of the juice mixture to produce 1 litre of Fizz. The analysis of the actual data from the last year shows that: . RED used 125,000 litres of the juice mixture to produce 110,000 litres of Fizz; . Total direct material usage variance of $2,500 was adverse; . Total direct material price variance of $4,000 was favourable. Compute total material mix variance for the last year based on the information above. Use a minus sign in case of an adverse variance. You can provide your calculation in the second field. Total material mix variance: Calculation