Panhandle Chemical Company manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for producing a single batch of 500 gallons of doroxaline follows:

Quantity Cost (LO 10)

Input Chemical (in gallons) (per gallon) Total Cost KaleXter cerccmmara tiene ee ee. 100 $2.00 $200 eXcel Sa et: 300 75 225 mhhe.com/hilton4e Crayouter eee ee etree 225 1.00 225 NONE er eeamnee Meta dla setenv 625 $650 A 20 percent loss in the doroxaline’s liquid volume occurs during processing due to evaporation. The finished liquid is sold in 10-gallon bottles. Thus, the standard material cost for a 10-gallon bottle is $13.

The actual quantities and the cost of direct materials placed in production during November were as follows. (All materials purchased are immediately placed into production during the same period.)

Quantity Input Chemical (in gallons) Total Cost INGEITE Gate oo oS ERENCE Meee a ee 8,480 $17,808 SalitOe nate Seegert heonsra nieonsm c ates 25,200 16,380 Grayolitecie. Heys sah dearcertastatst e 18,540 17,613 UO! Saseoasne sctmceaonseeneamncercmee eean eeen a 92,220 $51,801 A total of 4,000 bottles (40,000 gallons) of doroxaline were produced during November.

Required

a. Calculate the total direct-material variance for doroxaline for the month of November, and then further analyze the total variance by computing these variances:

(1) Direct-material price and quantity variances.

(2) Direct-material mix and yield variances.

b. Prepare a variance chart similar to the one in Exhibit 16-8.