Sure-Gro Company is a manufacturer of fertilizer which is sold in \(40 \mathrm{lb}\). bags. Its major product, Sure-Gro I, is composed of three active chemicals and an inert filler (which has no nutritive value) in the following proportions:

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Chemical 1: 8% Chemical 2: 8% Chemical 3: 8% Inert filler: 76% 'The standard prices paid for these ingredients are: Chemical 1:$1.00 per lb.; Chemical 2: $.50 per Ib.; Chemical 3: $.10 per lb., and filler: $.05 per lb. During August, 10,000 bags of Sure-Gro I were produced. The following quantities of each ingredient were used: Chemical 1: 28,000 lbs. Chemical 2: 32,000 lbs. Chemical 3: 36,000 lbs. Inert filler: 304,000 lbs. Determine the materials mix variance