Classic Cleaning Company Classic Cleaning Company manufactures a cleaning solvent.The company employs both skilled and unskilled workers.To produce one 55-gallon drum of solvent requires Materials A and B as well as skilled labor and unskilled labor.The standard and actual material and labor information is presented below:
Standard:
Material A: 30.25 gallons @ $1.25 per gallon
Material B: 24.75 gallons @ $2.00 per gallon
Skilled Labor: 4 hours @ $12 per hour
Unskilled Labor: 2 hours @ $ 7 per hour
Actual:
Material A: 10,716 gallons purchased and used @ $1.50 per gallon
Material B: 17,484 gallons purchased and used @ $1.90 per gallon
Skilled labor hours: 1,950 @ $11.90 per hour
Unskilled labor hours: 1,300 @ $7.15 per hour
During the current month Classic Cleaning Company manufactured 500 55-gallon drums.
Round all answers to the nearest whole dollar.
Refer to Classic Cleaning Company.What is the total material mix variance?

Question

Quizplus · Accepted Answer

Material mix variance = (Actual quantity of A x Standard price of A) + (Actual quantity of B x Standard price of B) - (Actual quantity of A x Actual price of A) - (Actual quantity of B x Actual price of B)
= (10,716 x 1.25) + (17,484 x 2) - (10,716 x 1.50) - (17,484 x 1.90)
= $3,596 unfavorable variance

Classic Cleaning Company Classic Cleaning Company Manufactures a Cleaning Solvent