atoro Chemical Company manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for producing a single batch of 500 galloons of one liquid is as follows: Liquid Chemical
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 galloons 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 |
225 |
1.00 |
225 |
|
|
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
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.:
|
Liquid Chemical |
Qty. in Gallons |
Total Cost |
|
Tanggo |
18,540 |
P16,686 |
|
Salve |
8,480 |
17,384 |
|
Clarity |
25,200 |
17,640 |
What is Yatoro’s yield variance?
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