The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $138. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Chemical Std input quantity Std cost per liter Total cost Echol 230 $ 0.200 $ 46.00 Protex 130 0.425 55.25 Benz 280 0.150 42.00 CT-40 80 0.300 24.00 720 $ 167.25 The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 170 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs and chemical usage variations at the end of the production period. Chemical Quantity Purchased Total Cost Quantity Used Echol 25,600 $ 5,770 27,200 Protex 13,600 6,645 13,480 Benz 40,600 6,245 38,400 CT-40 8,100 2,625 7,740 87,900 86,820 If BE recognizes all variances at the earliest possible moment, what is the total material price variance? Multiple Choice $1,135. $1,865. $2,245. $1,515.

The Becton Enterprises (BE) produces a gasoline additive. Charger Power. This product Increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result of the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $138. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Chemical Echol Protex Benz CT-40 Std input quantity 230 130 288 88 720 Std cost per liter $0.200 8.425 0.150 0.300 Total cost $ 46.00 55.25 42.00 24.00 $167.25 The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 170 batches of Charger Power were manufactured during the current production period. The controller of BE has determined Its costs and chemical usage variations at the end of the production period. Chemical Echol Protex Benz CT-40 Quantity Purchased 25,600 13,600 40,600 8,100 87,900 Total Cost $5,770 6,645 6,245 2,625 Quantity Used 27,200 13,480 38,400 7,740 86,820 If BE recognizes all varlances at the earliest possible moment, what is the total material price variance? Multiple Choice o $1.135. O $1.985. $2.245 $1.515