Davis Division uses two raw materials-X33 and 242-to produce its product called Base 23, a...
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Davis Division uses two raw materials-X33 and 242-to produce its product called Base 23, a chemical base for interior house paint. The materials are mixed in the following standard proportions to yield 100 litres of Base 23: Material X33 242 Quantity (litres) 80 Cost per Litre $ 1 $ 5 20 It requires 5 hours of direct labour at $15 per hour to produce 100 litres of Base 23. On average, the division can produce and sell 20,000 litres of Base 23 per month. In a recent month, the division used the following amounts of materials and labour to produce 18,000 litres of Base 23: Material X33 242 Quantity (litres) 16,200 5,400 Total Actual Cost 16, 200 27,500 $ 21,600 $ 43,700 Direct labour 1,050 hours $ 15,750 Required: 1. Calculate the following materials variances for Base 23: (Do not round intermediate computations. Round final computations to nearest whole dollar. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) a. Price b. Quantity | c. Mix d. Yield
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