a)Roasters Limited is a coffee-blending firm.It produces a special blend of coffee known as "Utopia Blend" by mixing two grades of coffee "AB" and "QP" as follows:

Material

Standard mix ratio

Standard price per Kg

AB

40%

Sh 120

QP

60%

Sh 100

A standard loss of 15% is expected.During the month of March 2002, the company produced 2,500 kg of "Utopia Blend".The actual quantities blended were as follows:

Quantity used

Cost (Sh)

AB

1,400kg

175,000

QP

1,600kg

152,000

Required:

Calculate the following variances

i)Material price variance(2 marks)

ii)Material usage variance(2 marks)

iii)Material mix variance(2 marks)

iv)Material yield Variance(2 marks)

v)Material cost variance(2 marks)