8 - Chemical Actual Quantity (gallons) Budgeted Quantity...

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Extra problem Lecture 8: Direct materials efficiency, mix, and yield variances. Direct materials efficiency, mix, and yield variances. The Energex Company produces a gasoline additive, Gas Gain, that increases engine efficiency and improves gasoline mileage. The actual and budgeted quantities and the bugetted prices in August 2007 of the two petroleum products required to produce 50,000 gallons of Gas Gain are as follows:
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Unformatted text preview: Chemical Actual Quantity (gallons) Budgeted Quantity (gallons) Budgeted Price (per gallon) Protex Benz 16,200 37,800 20,800 31,200 $0.40 $0.25 Required: 1. Calculate the total direct materials efficiency variance for August 2007. 2. Calculate the total direct materials mix and yield variance for August 2007. 3. What conclusions can you draw from the variance analysis?...
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8 - Chemical Actual Quantity (gallons) Budgeted Quantity...

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