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	760	gallons	0.95	$5.25	$3990.00
Aromatic compounds	40		0.05	8070.00	322800.00
Total	800	gallons			$326,790
Yield	752	gallons

On May 2, Chypre produced a batch of 1,000 gallons with the following actual results:

Direct Material	Actual Mix
Solvent mix	946	gallons
Aromatic compounds	54
Total	1,000	gallons
Yield	865	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. $ per unit of the yield

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. $