Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) which it sells to other companies for bottling and sale to consumers. Chypre developed the following standard cost sheet:

Required:
1. Calculate the yield ratio.
2. Calculate the standard cost per unit of the yield. (Round to the nearest cent.)
3. Calculate the direct materials yield variance. (Round to the nearest cent.)
4. Calculate the direct materials mix variance. (Round to the nearest cent.)LO1

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Direct Material Solvent mix Mix Mix Proportion SP Standard Cost 760 gallons 0.95 $ 5.27 $ 4,005.20 Aromatic compounds 40 0.05 8,000.00 320,000.00 Total 800 gallons $324,005.20 Yield 720 gallons On May 2, Chypre produced a batch of 1,000 gallons with the following actual results: Direct Material Solvent mix Aromatic compounds Total Yield Actual Mix 945 gallons 55 1,000 gallons 880 gallons