Beautiful Paints Company makes different paints. Its semi-gloss paint product requires two chemical ingredients, X and Y. The standard cost and quantity data follow.

DirectMaterials	Standard Price per Gallon	Standard Quantity (Gallon) of Input per Gallon of Semi-Gloss Paint	Standard Cost per Gallon of Semi-Gloss Paint
Chemical X	$8	0.5	$4
Chemical Y	2	0.5	1

During October, Beautiful Paints Company had the following results:

Units produced	20,000 gallons of semi-gloss paint
Materials purchased and used:
Chemical X	9,800 gallons at $8.20 per gallon
Chemical Y	10,500 gallons at $2.10 per gallon

Required:

Determine the price, mix, and yield variances for Beautiful Paints Companys semi-gloss paint in October.

Problem 2

A CPA firm is to perform an audit job for a regular client. Based on past experiences working with the client, 750 partner hours (at a cost of $200 per hour) and 2,250 staff hours (at a cost of $75 per hour) are budgeted for the job.

Due to unforeseen events at the clients sites, a total of 2,700 hours are used consisting of 900 partner hours and 1,800 staff hours. The hourly rate for partner time is the same as budgeted but the hourly rate for staff time become $100 per hour because more experienced staff members are put to work.

Required:

Determine all the variances for the CPA firm on the audit job.