acct 390 ch 17 hw q6

Problem 17-56 (Static) Materials Mix and Yield Variances (LO 17.5) Mckinney Solvents produces a wide variety products for the manufacturing industry. The standard mix for producing a single batch of 100 gallons of its biggest selling product is as follows: There is a standard 20 percent loss in liquid volume during processing due to evaporation. The finished liquid is put into 10 -galion containers for sale. Thus, the standard material cost for a 10 -gallon container is $312.50[=($3,125100 gallons) * 10 gallons per container]. The actual quantities of direct materials and the cost of the materials placed in production during March were as follows (materlals are purchased and used at the same time): A total of 5,000 containers (50,000 gallons) were produced during March. Required: Calculate the total direct material variance for the liquid product for the month of March and then further analyze the total variance into: a. and b. Materials price and efficiency variances and materiais mix and yield variances. Note: Do not round intermediate calculations, Indicate the effect of each variance by selecting "F" for favorable, or " U " for unfavorable. If there is no effect, do not select either option. A total of 5,000 containers (50,000 gallons) were produced during March. Required: Calculate the total direct material variance for the liquid product for the month of March and then further analyze the total varian into: a. and b. Materials price and efficiency variances and materials mix and yield variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or " U " for unfavorable. If there is no effect, do not select either option