Question: Please answer question in the format as required please Davis Division uses two raw materials-X33 and 242-to produce its product called Base 23, a chemical

Please answer question in the format as required please Please answer question in the format as required please Davis Division uses

Davis Division uses two raw materials-X33 and 242-to produce its product called Base 23, a chemical base for interior house paint. The materials are mixed in the following standard proportions to yield 100 litres of Base 23: Material X33 242 Quantity Ilitres) 80 20 Cost per Litre $1 $5 It requires 5 hours of direct labour at $15 per hour to produce 100 litres of Base 23. On average, the division can produce and sell 20,000 litres of Base 23 per month. In a recent month, the division used the following amounts of materials and labour to produce 18,000 litres of Base 23: Material X33 Quantity (litres) 16,200 5,400 Total Actual Cost $ 16,200 27,500 242 21,600 $ 43,700 Direct labour 1,050 hours $ 15,750 Required: 1. Calculate the following materials variances for Base 23: (Do not round intermediate computations. Round final computations to nearest whole dollar. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i e., zero variance).) Price b. Quantity e Mix d Yield

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!