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Required informationSouth Atlantic Chemical Company manufactures industrial chemicals in Rio de Janeiro, Brazil. The company plans to introduce a new chemical solution and needs to
Required informationSouth Atlantic Chemical Company manufactures industrial chemicals in Rio de Janeiro, Brazil. The company plans to introduce a new
chemical solution and needs to develop a standard product cost. The new chemical solution is made by combining a chemical
compound nyclyn and a solution salex heating the mixture, adding a second compound protet and bottling the resulting solution
in liter containers. The initial mix, which is liters in volume, consists of kilograms of nyclyn and liters of salex. A liter
reduction in volume occurs during the boiling process. The solution is cooled slightly before kilograms of protet are added. The
addition of protet does not affect the total liquid volume.
The purchase price of the direct materials used in the manufacture of this new chemical solution are given below. The real,
abbreviated $ is Brazil's national currency. On the day this problem was written, one real was equivalent to US $
Required:
Determine the standard material cost of a liter container of the new product.
Note: Round your answer to decimal places.
Answer is complete but not entirely correct.
During June, Danby Company's material purchases amounted to pounds at a price of $ per pound. Actual costs
incurred in the production of units were as follows:
The standards for one unit of Danby Company's product are as follows:
Required:
Compute the directmaterial price and quantity variances, the directmaterial purchase price variance, and the directlabor rate and
efficiency variances.
Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter for no effect ie
zero variance
Answer is not complete.
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