A total of 9,300 containers (213,900 liters) were produced during September. Required: Calculate the total direct material variance for the liquid product for the month of September and then further analyze the total variance into: a. & b. Materials price and efficiency variances and materials mix and yield variances. (Do not round intermediate calculations. Round “Standard mix values” to 3 decimal places. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your answers rounded to the nearest whole number.)
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Can someone help me please with full working and steps
Plano Products manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for producing a single batch of 100 liters of its biggest selling product is as follows.
| Input Chemical | Quantity (in liters) | Cost (per liter) | Total Cost |
| Chem-A | 33 | 35 | $1,155 |
| Chem-B | 73 | 25 | 1,825 |
| Chem-C | 19 | 10 | 190 |
| 125 | $3,170 |
There is a standard 20 percent loss in liquid volume during processing due to evaporation. The finished liquid is put into 23-liter containers for sale. Thus, the
The actual quantities of direct materials and the cost of the materials placed in production during September were as follows (materials are purchased and used at the same time).
| Input Chemical | Quantity (in liters) | Total Cost |
| Chem-A | 25,160 | $ 734,248 |
| Chem-B | 43,900 | 1,182,320 |
| Chem-C | 30,540 | 1,288,220 |
| 99,600 | $ 3,204,788 |
A total of 9,300 containers (213,900 liters) were produced during September.
Required:
Calculate the total direct material variance for the liquid product for the month of September and then further analyze the total variance into:
a. & b. Materials price and efficiency variances and materials mix and yield variances. (Do not round intermediate calculations. Round “Standard mix values” to 3 decimal places. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your answers rounded to the nearest whole number.)
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