Problem $17-56($Static$)$ Materials Mix and Yield Variances $($LO $17-5)$

Mckinney Solvents produces a wide variety products for the manufacturing industry. The standard mix for producing a single batch of

$100$ gallons of its biggest selling product is as follows:

There is a standard $20$ percent loss in liquid volume during processing due to evaporation. The finished liquid is put into $10-$gallon

containers for sale. Thus, the standard material cost for a $10-$gallon container is $$312\mathrm{.}50[$ gallons$)10$ gallons per

container$].$

The actual quantities of direct materials and the cost of the materials placed in production during March were as follows $($materials are

purchased and used at the same time$)$:

A total of $5,000$ containers $(50,000$ gallons$)$ were produced during March.

Required:

Calculate the total direct material variance for the liquid product for the month of March and then further analyze the total variance

into:

a$.$ and b$.$ Materials price and efficiency variances and materials mix and yield variances.

Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting $"$F$"$ for favorable, or $"U"$ for

unfavorable. If there is no effect, do not select either option.