McKinney Solvents produces a wide variety of products for the manufacturing industry. The standard mix for producing a single batch of 100 gallons of its biggest-selling product is as follows:

There is a standard 20 percent loss in liquid volume during processing due to evaporation. The finished liquid is put into 10-gallon containers for sale. Thus, the standard materials cost for a 10-gallon container is $312.50 [= ($3,125 ÷ 100 gallons) × 10 gallons per container]. 

The actual quantities of direct materials and the cost of the materials placed in production during March were as follows (materials are purchased and used at the same time): 

A total of 5,000 containers (50,000 gallons) were produced during March. 

Required

Calculate the total direct materials variance for the liquid product for the month of March and then further analyze the total variance into:

a. Materials price and efficiency variances.

b. Materials mix and yield variances.

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Input Chemical X-1 X-2 X-3 Quantity (in gallons) 22.5 40.0 62.5 125.0 Cost (per gallon) $50 25 16 Total Cost $1,125 1,000 1,000 $3,125