McKinney Solvents produces a wide variety products for the manufacturing industry. The standard mix for producing a single batch of 100 gallons of its biggest selling product is as follows: Input Chemical X-1 X-2 X-3 Quantity (in gallons) 22.5 40 62.5 125 Input Chemical X-1 X-2 X-3 Cost (per gallon) $ 88 63 54 There is a standard 20 percent loss in liquid volume during processing due to evaporation The finished liquid is put into 10-gallon containers for sale. Thus, the standard material cost for a 10-gallon container is $787.50 [= ($7.875-100 gallons)- 10 gallons per container] Quantity (in gallons) 13,150 20,350 30,850 64,350 The actual quantities of direct materials and the cost of the materials placed in production during March were as follows (materials are purchased and used at the same time) Total Cost $ 1,980 2,520 3,375 $ 7,875 Total Cost $ 977,800 1,349,700 1,795,000 $4,122,500
McKinney Solvents produces a wide variety products for the manufacturing industry. The standard mix for producing a single batch of 100 gallons of its biggest selling product is as follows: Input Chemical X-1 X-2 X-3 Quantity (in gallons) 22.5 40 62.5 125 Input Chemical X-1 X-2 X-3 Cost (per gallon) $ 88 63 54 There is a standard 20 percent loss in liquid volume during processing due to evaporation The finished liquid is put into 10-gallon containers for sale. Thus, the standard material cost for a 10-gallon container is $787.50 [= ($7.875-100 gallons)- 10 gallons per container] Quantity (in gallons) 13,150 20,350 30,850 64,350 The actual quantities of direct materials and the cost of the materials placed in production during March were as follows (materials are purchased and used at the same time) Total Cost $ 1,980 2,520 3,375 $ 7,875 Total Cost $ 977,800 1,349,700 1,795,000 $4,122,500
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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![McKinney Solvents produces a wide variety products for the manufacturing industry. The standard mix for producing a single batch of
100 gallons of its biggest selling product is as follows:
Input Chemical
X-1
X-2
X-3
Quantity (in
gallons)
22.5
40
62.5
125
Input Chenlcal
X-1
X-2
X-F
Cost (per
gallon)
$ 88
63
54
There is a standard 20 percent loss in liquid volume during processing due to evaporation. The finished liquid is put into 10-gallon
containers for sale. Thus, the standard material cost for a 10-gallon container is $787.50 [-($7.875-100 gallons) 10 gallons per
container]
The actual quantities of direct materials and the cost of the materials placed in production during March were as follows (materials are
purchased and used at the same time)
Quantity (in
gallons)
13,150
20,350
30,850
64,350
Total Cost
$ 1,980
2,520
3,375
$ 2,875
Total Cost
$ 977,800
1,349,700
1,795,000
$4,122,500
***](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F204af8c0-2a8f-4feb-8ce5-5197569f99e2%2Fd3bd26d7-03ba-4360-9c7a-edfadb69f43e%2F8j1ju8zh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:McKinney Solvents produces a wide variety products for the manufacturing industry. The standard mix for producing a single batch of
100 gallons of its biggest selling product is as follows:
Input Chemical
X-1
X-2
X-3
Quantity (in
gallons)
22.5
40
62.5
125
Input Chenlcal
X-1
X-2
X-F
Cost (per
gallon)
$ 88
63
54
There is a standard 20 percent loss in liquid volume during processing due to evaporation. The finished liquid is put into 10-gallon
containers for sale. Thus, the standard material cost for a 10-gallon container is $787.50 [-($7.875-100 gallons) 10 gallons per
container]
The actual quantities of direct materials and the cost of the materials placed in production during March were as follows (materials are
purchased and used at the same time)
Quantity (in
gallons)
13,150
20,350
30,850
64,350
Total Cost
$ 1,980
2,520
3,375
$ 2,875
Total Cost
$ 977,800
1,349,700
1,795,000
$4,122,500
***
![A total of 5,190 containers (51,900 gallons) were produced during March
Required:
Calculate the total direct material variance for the liquid product for the month of March and then further analyze the total variance
into:
Input Chemical
a. and b. Materials price and efficiency variances and materials mix and yield variances.
Note: Do not round intermediate calculations. 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.
X-1
X-2
64,350
X-3
Total
$ 4,122,500
Mix Variance
Direct Material
Yield Variance
Efficiency Variance
Purchase Price Variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F204af8c0-2a8f-4feb-8ce5-5197569f99e2%2Fd3bd26d7-03ba-4360-9c7a-edfadb69f43e%2Frabu18_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A total of 5,190 containers (51,900 gallons) were produced during March
Required:
Calculate the total direct material variance for the liquid product for the month of March and then further analyze the total variance
into:
Input Chemical
a. and b. Materials price and efficiency variances and materials mix and yield variances.
Note: Do not round intermediate calculations. 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.
X-1
X-2
64,350
X-3
Total
$ 4,122,500
Mix Variance
Direct Material
Yield Variance
Efficiency Variance
Purchase Price Variance
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