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Question - Yatoro Chemical Company manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for producing a single batch of 500 gallons of one liquid is as follows:
Liquid Chemical
Qty. in Gallons
Cost per Gallon
Total Cost
Salve
100
P2.00
P200
Clarity
300
0.75
225
Tanggo
1.00
625
P650
There is a 20% loss in liquid volume during processing due to evaporation. The finished liquid is put into 10-gallon bottles for sale. Thus, the standard materials cost for a 10-gallon bottle is P13.
A total of 4,000 bottles (40,000 gallons) were produced during November. The actual quantities and costs of the materials placed in production during November were as follows:
18,540
P16,686
8,480
17,384
25,200
17,640
Required - What is Yatoro's yield variance?
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