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Direct Materials Mix and Yield Variances Chypre, Inc., produces a cologne mist using a solvent mix...

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 570 gallons 0.95     $5.65 $3220.50
Aromatic compounds 30 0.05 8010.00 240300.00
   Total 600 gallons $243,520.5
Yield 546 gallons

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

Direct Material Actual Mix
Solvent mix 945 gallons
Aromatic compounds 55
   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.
$  Unfavorable

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

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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