Direct materials efficiency, mix and yield variances. Flavr-Wave Company makes candy. Their most popular product is the toe pop, a large lollipop shaped like a toe. The direct materials used in the toe pop are sugar, flavoring, and coloring. For each batch of 100 pops, the budgeted quantities and budgeted prices of direct materials are as follows:

Changing the standard mix of direct material quantities slightly does not significantly affect the overall end product, particularly for the flavoring and coloring. In the current period, Flavr-Wave made 2,300 toe pops in 23 batches with the following actual quantity, cost and mix of inputs:

1. What is the budgeted cost of direct materials for the 2,300 toe pops?

2. Calculate the total direct materials efficiency variance.

3. Why is the total direct materials price variance zero?

4. Calculate the total direct materials mix and yield variances. What are these variances telling you about the 2,300 toe pops produced this period? Are the variances large enough toinvestigate?

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Quantity for One Batch 7 cups 2 cups 1 cup Price of Input $1 per cup $3 per cup $2 per cup Sugar Flavoring Coloring