Please do not give solution in image format thanku 9McKinney Solvents produces a wide variety products for the manufacturing industry. The standard mix for producing a single batch of100 gallons of its biggest selling product is as follows:Input ChemicalX-1X-2X-3Input ChemicalX-1X-2X-3Quantity (ingallons)22.54062.5125There is a standard 20 percent loss in liquid volume during processing due to evaporation. The finished liquid is put into 10-galloncontainers for sale. Thus, the standard material cost for a 10-gallon container is $462.50 [= ($4,625 + 100 gallons) x 10 gallons percontainer].The actual quantities of direct materials and the cost of the materials placed in production during March were as follows (materials arepurchased and used at the same time):Input ChemicalCost (pergallon)$ 623728Quantity (ingallons)12,50019,70030, 20062,400X-1X-2X-3TotalTotal Cost$ 1,3951,4801,750$ 4,625A total of 5,060 containers (50,600 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 varianceInto:Total Cost$ 717,800764,700898,000$ 2,380,500a. and b. Materials price and efficiency variances and materials mix and yield variances.Note: Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select elther option.Mix VarianceDirect MaterialYield VarianceEfficiency Variance Purchase Price Variance

A variance is when the actual results differ from the budgeted or the standard ones. In the case of…

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: Input Chemical X-1 X-2 X-3 Quantity (in gallons) 22.5 40 62.5 125 Input Chemical X-1 X-2 X-3 Cost (per gallon) $ 62 37 28 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 $462.50 [= ($4,625-100 gallons) x 10 gallons per container]. Quantity (in gallons) 12,500 19,700 30,200 62,400 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): Total Cost Total Cost $ 1,395 1,480 1,750 $ 4,625 $ 717,800 764,700 898,000 $ 2,380,500 A total of 5,060 containers (50,600 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

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 25P: Taylor Company produces two industrial cleansers that use the same liquid chemical input: Pocolimpio...