Davis Division uses two raw materials-X33 and Z42-to produce its product called Base...
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Davis Division uses two raw materials-X33 and Z42-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: Cost Quantity (litres) per Litre Material $ 1 5 33 80 242 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: Total Actual Material Quantity (litres) 16,200 Cost 33 16,200 27,500 242 5,400 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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