I know that the mix variance is calculated by computing the difference between the actual amount of direct materials and the standard amount, then multiplying by the standard price. In this case, I did:

(945-760)(5.27)=974.95 U

(55-40)(8000)=120,000 U

I'm just really confused and not sure what I'm doing wrong.

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Direct Materials Mix and Yield Variances 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: Direct Material Solvent mix Mix Mix Proportion SP Standard Cost 760 gallons 0.95 $ 5.27 $ 4,005.20 0.05 8,000.00 320,000.00 800 gallons $324,005.20 720 gallons Aromatic compounds 40 Total Yield On May 2, Chypre produced a batch of 1,000 gallons with the following actual results: Direct Material Actual Mix Solvent mix 945 gallons 55 Aromatic compounds Total 1,000 gallons Yield Required: 880 gallons Instructions for parts 3 and 4: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Calculate the yield ratio. If required, round your answer to two decimal places. 0.9 2. Calculate the standard cost per unit of the yield. If required, round your answer to the nearest cent. $ 450.01 per unit of the yield 3. Calculate the direct materials yield variance. If required, round your answer to the nearest cent. 9,000.20 Unfavorable $ 4. Calculate the direct materials mix variance. If required, round your answer to the nearest cent. 119,025.05 X Unfavorable Direct Materials Mix and Yield Variances 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: Direct Material Solvent mix Mix Mix Proportion SP Standard Cost 760 gallons 0.95 $ 5.27 $ 4,005.20 0.05 8,000.00 320,000.00 800 gallons $324,005.20 720 gallons Aromatic compounds 40 Total Yield On May 2, Chypre produced a batch of 1,000 gallons with the following actual results: Direct Material Actual Mix Solvent mix 945 gallons 55 Aromatic compounds Total 1,000 gallons Yield Required: 880 gallons Instructions for parts 3 and 4: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Calculate the yield ratio. If required, round your answer to two decimal places. 0.9 2. Calculate the standard cost per unit of the yield. If required, round your answer to the nearest cent. $ 450.01 per unit of the yield 3. Calculate the direct materials yield variance. If required, round your answer to the nearest cent. 9,000.20 Unfavorable $ 4. Calculate the direct materials mix variance. If required, round your answer to the nearest cent. 119,025.05 X Unfavorable

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