Question
Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other
Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies for bottling and sale to consumers. Chypre developed the following standard cost sheet:
Direct Material | Mix | Mix Proportion | SP | Standard Cost | |
Solvent mix | 760 | gallons | 0.95 | $ 5.27 | $ 4,005.20 |
Aromatic compounds | 40 | 0.05 | 8,000.00 | 320,000.00 | |
Total | 800 | gallons | $324,005.20 | ||
Yield | 720 | gallons |
On May 2, Chypre produced a batch of 1,000 gallons with the following actual results:
Direct Material | Actual Mix | |
Solvent mix | 945 | gallons |
Aromatic compounds | 55 | |
Total | 1,000 | gallons |
Yield | 880 | gallons |
3. Calculate the direct materials yield variance. If required, round your answer to the nearest cent. $fill in the blank 3
FavorableUnfavorableNot applicable
4. Calculate the direct materials mix variance. If required, round your answer to the nearest cent. $fill in the blank 5
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started