Direct Materials Mix and Yield Variances

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	665	gallons	0.95	$5.35	$3557.75
Aromatic compounds	35		0.05	8020.00	280700.00
Total	700	gallons			$284,257.75
Yield	637	gallons

On May 2, Chypre produced a batch of 950 gallons with the following actual results:

Direct Material	Actual Mix
Solvent mix	898.7	gallons
Aromatic compounds	51.3
Total	950	gallons
Yield	810	gallons

Required:

Instructions for parts 3 and 4: If a variance is zero, enter "0" and select "Not applicable" from the drop down box.

1. Calculate the yield ratio. If required, round your answer to two decimal places. ____

2. Calculate the standard cost per unit of the yield. If required, round your answer to the nearest cent. ____

3. Calculate the direct materials yield variance. If required, round your answer to the nearest cent. _____ Unfavorable or favorable

4. Calculate the direct materials mix variance. If required, round your answer to the nearest cent. _____ Unfavorable or favorable