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As detailed as possible please A chemical company produces a solvent used by manufacturers of plastics. Three basic chemicals go into this solvent. The standards
As detailed as possible please
A chemical company produces a solvent used by manufacturers of plastics. Three basic chemicals go into this solvent. The standards for one liter of this product are provided below. STANDARDS FOR ONE LITER OF SOLVENT Chemical A Chemical B Chemical C 250 ml at S10 per liter 400 ml at $50 per liter 350 ml at $20 per liter During the last period, 20,000 liters of the solvent were produced and the company purchased the following amounts of each chemical. ACTUAL PURCHASES OF CHEMICALS DURING ACCOUNTING PERIOD Chemical A Chemical B Chemical C 5,200 liters at S 9.00 per liter 7,800 liters at $55.00 per liter 7,100 liters at $21.00 per liter Because these chemicals are volatile, the company uses them immediately upon purchase, so there are no beginning and ending inventories. REQUIRED: () Compute the direct material price and efficiency variances. Round all calculations to the nearest whole dollar. Compute the direct material mix and yield variances. Round all calculations to the nearest whole dollar. (2)Step by Step Solution
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