Direct materials efficiency, yield and mix variances. (CMA adapted) (20—25 minutes) Paix-Trolls, SARL, produces a gasoline additive, Elysium, that increases engine efficiency and reduces gasoline consumption. The actual and budgeted quantities (in litres) of materials required to produce Elysium and the budgeted prices of materials in August 2000 are as follows: ji7

REQUIRED 1. Calculate the total direct materials efficiency variance for August 2000.
2. Calculate the total direct materials yield and mix variances for August 2000.
3. What conclusions would you draw from the variance analysis?

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CHEMICAL ACTUAL QUANTITY BUDGETED QUANTITY BUDGETED PRICE Echol 24.080 25,200 EUR 0.20 Protex 15,480 16,800 0.45 Benz 36,120 33,600 0.15 CT-40 10,320 8,400 0.30