A factory manufactures a chemical product with three ingredients, A, B & C. The standard mix is 25% A, 40% B and 35% C, in terms of ingredients. A costs Rs 7/kg, B costs Rs 9/kg and C costs Rs 11/kg. There is a process loss of 5% and 19,000 kgs of output were produced. 5500 kgs of A were consumed @ Rs 8/kg, 7500 kgs of B were consumed @ Rs 12/kg and 8000 kgs of C were consumed @ Rs 10/kg.

1. Construct a table clearly highlighting the standard quantities and prices and actual consumption and prices

2. Determine the Material Cost Variance and split this up into Materials Price and Materials Usage Variance

3. Determine the Materials Yield and Materials Mix Variance

4. State your observations and draw the necessary inferences