Yatoro Chemical Company manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for producing a single batch of 500 galloons of one liquid is as follows:  Liquid Chemical  Qty. in Gallons  Cost per Gallon  Total Cost  Salve  100  P2.00  P200  Clarity  300    0.75

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Yatoro Chemical Company manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for producing a single batch of 500 galloons of one liquid is as follows: 

Liquid Chemical 

Qty. in Gallons 

Cost per Gallon 

Total Cost 

Salve 

100 

P2.00 

P200 

Clarity 

300 

  0.75 

  225 

Tanggo 

225 

  1.00 

  225 

  

625 

  

P650 

  

There is a 20% loss in liquid volume during processing due to evaporation. The finished liquid is put into 10-gallon bottles for sale. Thus, the standard materials cost for a 10-gallon bottle is P13. 
 
 

A total of 4,000 bottles (40,000 gallons) were produced during November. The actual quantities and costs of the materials placed in production during November were as follows.: 
 
 

Liquid Chemical 

Qty. in Gallons 

Total Cost 

Tanggo 

18,540 

P16,686 

Salve 

8,480 

   17,384 

Clarity 

25,200 

   17,640 

  

What is Yatoro’s mix variance? 

Group of answer choices 

P90.50 favorable 

P91.20 unfavorable 

P91.20 favorable 

P90.50 unfavorable 

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