1. Consider the process to Hydrodealkylate toluene to produce benzene and identify if the process needs to be optimized. Design calculations using Aspen HYSYS indicate that to meet the scheduled benzene production rate (503,736 kg) for the upcoming year, 23 kg of raw materials is required to produce each kg of product. However, it was reported that the actual production rate for the year is 650,050 kg of benzene. After reaching out to previous accounting reports you find out that the beginning inventory and ending inventory of the raw material to be 1,238,928 kg (beginning of the yr) and 1,420,000 kg, respectively. For the same operational year, the actual purchased of raw material was reported to be 2,698,000 kg. The standard unit cost for the raw material was reported to be $0.68/kg at the beginning of the year while the actual average cost was reported to be $0.71/kg.

2. 3. 1. What is the budgeted amount of the raw material?
      2. What was the budgeted cost of raw material?
      3. What was the actual cost of raw material at the end of the yr?
      4. Calculate the quantity variance percentage of the raw material
      5. Calculate the cost variance percentage of the raw material
      6. Compare d and e. Indicate if the process needs to be optimized using the information above. Is there any waste in the process? Do you have any suggestions for cost control and optimization?