Production mix and yield variances The Theodore Berlin Manufacturing Company makes construction and road building supplies. One product used as a top coat sealer has the following material standards for a standard production batch consisting of 25 tons of top coat:

Transcribed Image Text:

REQUIRED Petroleum base, in pounds ($.12 per pound) Tar ($400 per ton) Gravel ($30 per ton) Total inputs, in pounds 20,000 5,000 25,000 50,000 During the past week, the company manufactured 90 tons of top coat sealer and incurred the following material costs: Petroleum base ($45 per barrel) 75,000 pounds Tar ($410 per ton) Gravel ($32 per ton) 12 tons 50 tons There are 2,000 pounds in a ton and a barrel of petroleum base weighs 400 pounds. a. Compute the standard material cost per ton of output. b. Compute the material price variance. c. Compute the material quantity variance. d. Compute the material mix and yield variances.