Becton Labs produces a variety of chemical compounds for industrial uses. The standard mix for February's production of 80,000 litres of Product "X" and the budgeted costs, are as follows: Liquid Chemical Quantity (in litres) Cost (per litre) Total Cost Barralene Prismane Miraculin 16,000 48,000 36,000 $4.00 $1.50 $2.00 $64,000 72,000 72,000 The actual quantities and costs of the direct materials placed into production during February to produce Product "X" were as follows (all materials purchased were used): Liquid Chemical Quantity (in litres) Total Cost Barralene Prismane Miraculin 16,960 50,400 37,040 104,400 $64,768 75,280 73,372 $213,420 A total of 80,000 litres of Product "X" was produced during February. REQUIRED: Calculate the direct materials efficiency, mix, and yield variances for each direct material. 2 Question II - Process Costing (16 Marks) Miller Toy Company manufacturers a plastic swimming pool that passes through four sequential processes. Production data for February for Department 3 of the operation is as follows: Production Data Work-in-process February 1 Received from Department 2 Transferred to Department 4 Work-in-process February 31 (Materials 100% complete; conversion 30% complete) Units spoiled (normal:3200 units; abnormal:800 units) Units 4,000 140,000 ? 12,000 4,000 Accounting Data Work-in-process beginning inventory: Transferred-in costs Materials Conversion costs Total $11,200 5,000 5,760 $21,960 Costs of the current period: Transferred-in costs Materials Conversion costs Total $413,000 182,000 481,800 $1,076,800 Materials are added at the beginning of the process in Department 3. Inspection occurs at the 100% completion stage. REQUIRED: Prepare a cost of production report (in good form) for Department 3 using the WeightedAverage method of process costing. (Carry your unit cost calculations to four (4) decimal places.)