Chypre, Ic., produces a cologne mist using a solvent mix (water and pure alcohol) and aro- matic compounds (the scent base) that it sells to other companies for bottling and sale to con- sumers. Chypre developed the following standard cost sheet: Direct Material Mix Proportion SP Mix Standard Cost Solvent mix 760 gallons 0.95 5.27 S 4,005.20 Aromatic compounds Total 40 0.05 8,000.00 320,000.00 800 gallons 720 gallons S324,005.20 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 Aromatic compounds 55 1,000 gallons 880 gallons Total Yield Required: 1. Calculate the yield ratio. 2. Caleulate the standard cost per unit of the yield. (Round to the nearest cent.) 3. Calculate the direct materials yield variance. (Round to the nearest cent.) 4. Calculate the direct materials mix variance. (Round to the nearest cent.)

Chypre, Ic., produces a cologne mist using a solvent mix (water and pure alcohol) and aro- matic compounds (the scent base) that it sells to other companies for bottling and sale to con- sumers. Chypre developed the following standard cost sheet: Direct Material Mix Proportion SP Mix Standard Cost Solvent mix 760 gallons 0.95 5.27 S 4,005.20 Aromatic compounds Total 40 0.05 8,000.00 320,000.00 800 gallons 720 gallons S324,005.20 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 Aromatic compounds 55 1,000 gallons 880 gallons Total Yield Required: 1. Calculate the yield ratio. 2. Caleulate the standard cost per unit of the yield. (Round to the nearest cent.) 3. Calculate the direct materials yield variance. (Round to the nearest cent.) 4. Calculate the direct materials mix variance. (Round to the nearest cent.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 17E: Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic...

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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 855 gallons 0.95 $5.55 $4745.25 Aromatic compounds 45 0.05 8080.00 363600.00 Total 900 gallons $368,345.25 Yield 828 gallons On May 2, Chypre produced a batch of 1,150 gallons with the following actual results: Direct Material Actual Mix Solvent mix 1,086.75 gallons Aromatic compounds 63.25 Total 1,150 gallons Yield 1,015 gallons Required: 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.fill in the blank 1 2. Calculate the standard cost per unit of the yield. If required,…
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