LAR Chemical Company manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for producing a single batch of 500 gallons of one liquid is as follows:

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 $13.
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:

Required:
(1) Compute the materials price, mix, and yield variances, including an analysis of the portion of the mix variance attributable to each material.
(2) Explain how LAR Chemical could use each of these variances to help control the cost to manufacture this liquid compound.

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cost Quantity in Gallons 100 Total Cost $200 225 225 Liquid Chemical per Gallon $2.00 .75 1.00 Maxan Salex Cralyn .. 625 Liquid Chemical Quantity in GallonsS Total Cost 8,480 7.384 Maxan Salex. Cralyn. 25.200 17,640 18540 16.686 $51.710 52.220