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Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and...

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Accounting

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 Mix Mix Proportion SP Standard Cost
Solvent mix 760 gallons 0.95 $ 5.27 $ 4,005.20
Aromatic compounds 40 0.05 8,000.00 320,000.00
Total 800 gallons $324,005.20
Yield 720 gallons

On May 2, Chypre produced a batch of 1,000 gallons with the following actual results:

Direct Material Actual Mix
Solvent mix 945 gallons
Aromatic compounds 55
Total 1,000 gallons
Yield 880 gallons

3. Calculate the direct materials yield variance. If required, round your answer to the nearest cent. $fill in the blank 3

FavorableUnfavorableNot applicable

4. Calculate the direct materials mix variance. If required, round your answer to the nearest cent. $fill in the blank 5

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