Reference no: EM133179507

Question - A Company produces product FIXER which is sold in bulk. The product's mixture is tested at intervals during the production process. Materials are added when needed and the standard mixture with standard prices for a 100-Ib batch is as follows:

10 lbs of chemical 1 - Php0.45

10 lbs of chemical 2 - Php0.30

30 Ibs of chemical 3 - Php0.06

20 lbs of chemical 4 - Php0.10

50 lbs of chemical 5 - Php0.05

During January, the following materials were purchased:

1,500 lbs of chemical 1 - Php0.47

1,100 lbs of chemical 2 - Php0.33

4,000 lbs of chemical 3 - Php0.07

2.200 lbs of chemical 4 - Php0.11.

5,300 lbs of chemical 5 - Php0.04

The materials price variance are recorded when materials are purchased. Production for the current month consistent of 10,700 Is of finished product. There were no beginning or ending inventories of work in process. The following actual materials quantities were put into production:

1,050 lbs of chemical 1

1,125 lbs of chemical 2

3,080 lbs of chemical 3

2,200 Ibs of chemical 4

5,300 lbs of chemical 5

Required -

a. Calculate direct materials mix variance.

b. Calculate direct materials yield variance.