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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.

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

Here is my formula and answer:

Solvent mix 897.75 902.5 5.45 -25.8875
Aromatic compounds 52.25 47.5 8100 -38475
Mix variance 950 950 -38500.8875

My final answer is wrong. What seems to be the problem? :(

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