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:

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

Required:
1. Calculate the yield ratio.
2. Calculate the standard cost per unit of the yield. (Round to the nearest cent.)
3. Calculate the direct materials yield variance. (Round to the nearest cent.)
4. Calculate the direct materials mix variance. (Round to the nearest cent.)

Transcribed Image Text:

Direct Material Solvent mix Aromatic compounds Mix 760 gallons 800 gallons 720 gallons Mix Proportion 0.95 0.05 SP Standard Cost S 5.27 8,000.00 S 4,005.20 320,000.00 S324,005.20 Total Yield Direct Material Solvent mix Aromatic compounds Actual Mix 945 gallons 1,000 gallons 880 gallons Total Yield