Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Direct Materials Mix and Yield Variances

  1. 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 570 gallons 0.95 $5.45 $3106.50
    Aromatic compounds 30 0.05 8100.00 243000.00
    Total 600 gallons $246,106.5
    Yield 546 gallons

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

    Direct Material Actual Mix
    Solvent mix 897.75 gallons
    Aromatic compounds 52.25
    Total 950 gallons
    Yield 820 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.

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Companies Audit Investigations And Community Enterprise Act 2004 UK

Authors: The Law Library

1st Edition

1987582950, 978-1987582956

More Books

Students also viewed these Accounting questions