Direct materials efficiency, mix, and yield variances. (CMA, adapted) The Energy Products Company produces a gasoline additive, Gas Gain, that increases engine efficiency and improves gasoline mileage. The actual and budgeted quantities (in litres) of materials required to produce Gas Gain and the budgeted prices of materials in August 2010 are as follows:

REQUIRED 1. Calculate the total direct materials efficiency variance for August 2010.
2. Calculate the total direct materials mix and yield variances for August 2010.
3. What conclusions would you draw from the variance analysis?LO1

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Chemical Actual Quantity Budgeted Quantity Budgeted Price Echol 24,080 25,200 $0.22 Protex 15,480 16,800 0.47 Benz 36,120 33,600 0.17 CT-40 10,320 8,400 0.32