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. Cost Quantity (in liters) (per liter) Total Cost Input Chemical Chem-A Chem-B 23 $15 $ 345 63 15 945 Chem-C 39 18 702 125 $1,992 There is a standard 20 percent loss in liquid volume during processing due to evaporation. The finished liquid is put into 13-liter containers for sale. Thus, the standard material cost for a 13-liter container is $258.96 [= ($1,992 ÷ 100 liters) x 13 liters per container]. 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 19,360 $ 284,248 Chem-B 48,900 732,320 988,220 Chem-C 35,540 103,800 $2,004,788 A total of 8,300 containers (107,900 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 varlance into: a. & b. Materials price and efficiency variances and materials mix and yield varlances. (Do not round Intermediate calculations. Round "Standard mix values" to 3 decimal places. Indicate the effect of each varlance 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.) Direct Material Input Chemical Mix Variance Yield Variance Efficiency Variance Purchase Price Variance Chem-A Chem-B Chem-C Total
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. Cost Quantity (in liters) (per liter) Total Cost Input Chemical Chem-A Chem-B 23 $15 $ 345 63 15 945 Chem-C 39 18 702 125 $1,992 There is a standard 20 percent loss in liquid volume during processing due to evaporation. The finished liquid is put into 13-liter containers for sale. Thus, the standard material cost for a 13-liter container is $258.96 [= ($1,992 ÷ 100 liters) x 13 liters per container]. 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 19,360 $ 284,248 Chem-B 48,900 732,320 988,220 Chem-C 35,540 103,800 $2,004,788 A total of 8,300 containers (107,900 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 varlance into: a. & b. Materials price and efficiency variances and materials mix and yield varlances. (Do not round Intermediate calculations. Round "Standard mix values" to 3 decimal places. Indicate the effect of each varlance 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.) Direct Material Input Chemical Mix Variance Yield Variance Efficiency Variance Purchase Price Variance Chem-A Chem-B Chem-C Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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.
Total
Input
Chemical
Chem-A
Quantity
(in liters)
Cost
(per liter)
Cost
23
$15
$ 345
Chem-B
63
15
945
702
Chem-C
39
18
125
$1,992
There is a standard 20 percent loss in liquid volume during processing due to evaporation. The finished liquid is put into 13-liter
containers for sale. Thus, the standard material cost for a 13-liter container is $258.96 [= ($1,992 ÷ 100 liters) x 13 liters per container].
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
Chem-A
Quantity (in
liters)
Total Cost
19,360
$ 284,248
Chem-B
48,900
732,320
988,220
Chem-C
35,540
103,800
$2,004,788
A total of 8,300 containers (107,900 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 varlances. (Do not round Intermediate calculations. Round
"Standard mix values" to 3 decimal places. Indicate the effect of each varlance 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.)
Direct Material
Input Chemical
Mix Variance
Yield Variance
Efficiency Variance Purchase Price Variance
Chem-A
Chem-B
Chem-C
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F386fafd1-1e1c-4432-8e33-d0017975ee71%2F3a0caa7b-f53c-4a84-8527-e1ac8b5ccac7%2Fiwpxaf_processed.png&w=3840&q=75)
Transcribed Image Text: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.
Total
Input
Chemical
Chem-A
Quantity
(in liters)
Cost
(per liter)
Cost
23
$15
$ 345
Chem-B
63
15
945
702
Chem-C
39
18
125
$1,992
There is a standard 20 percent loss in liquid volume during processing due to evaporation. The finished liquid is put into 13-liter
containers for sale. Thus, the standard material cost for a 13-liter container is $258.96 [= ($1,992 ÷ 100 liters) x 13 liters per container].
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
Chem-A
Quantity (in
liters)
Total Cost
19,360
$ 284,248
Chem-B
48,900
732,320
988,220
Chem-C
35,540
103,800
$2,004,788
A total of 8,300 containers (107,900 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 varlances. (Do not round Intermediate calculations. Round
"Standard mix values" to 3 decimal places. Indicate the effect of each varlance 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.)
Direct Material
Input Chemical
Mix Variance
Yield Variance
Efficiency Variance Purchase Price Variance
Chem-A
Chem-B
Chem-C
Total
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