The Chocolate manufacturing operations of Sweet Tooth Inc. require close control of daily production and cost data. The computer printout for a batch of 1 ton of coca powder indicates the following materials standard: Ingredients Standard Standard Standard Quantity Unit cost Batch (pounds) Cost Cocoa 800 P 0.60 P 480.00 Milk 3.700 0.50 1,850 Sugar 500 0.40 2001 5,000 P2,530 On November 3, 2020, the company's accounting department reported the following production and cost data for its October operations. Actual production was 387 tons. Ingredients Actual Actual Actual Price Total Cost Quantity (pounds) Cocoa 325,000 P 0.62 P 201,500 Milk 1,425,000 0.48 684,000 Sugar 250,000 0.39 97,500 Total 2,000,000 P983,000 Required: Compute for the total materials variance, materials price, mix and yield variances. Solution Guide Negative amounts should be written as: e.g. -5,000 Always indicate whether the variance is favorable or unfavorable: e.g. Total Materials Variance -1,000 Favorable Solution: Actual Cost P 983,000 Less: Standard Cost Total Materials Variance Ingredients Materials Price Favorable/Unfavorable Variance Cocoa Milk Sugar Materials Price Variance Ingredients Materials Mix Favorable/Unfavorable Variance Cocoa Milk {1:NM=-27,500 Sugar Materials Price Variance Expected Yield Actual Yield 3871 Difference Standard Cost per 2,530 Ton Materials Yield Unfavorable Variance