Direct Materials Usage Variances: Direct Materials Mix and Yield Variances Energy Products Company produces a gasoline additive, Gas Gain. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. If the controls are not effective, there can be a loss of output and efficiency. The standard cost of producing a 500-liter batch of Gas Gain is $135.00. The standard direct materials mix and related standard cost of each chemical used in a 500-liter batch are as follows: Standard Cost Chemical Echol Protex Benz CT-40 Mix SP $0.200 200 liters 100 250 0.425 0.150 0.300 $40.00 42.50 37.50 15.00 $135.00 50 600 titers Total The quantities of chemicals purchased and used during the current production period are manufactured during the current production period. Energy Products determines its cost and chemical usage variations at the e shown in the following schedule. A total of 190 batches of Gas Gain were Chemical Echol Protex Benz CT-40 Quantity Used 36,100 liters 17,480 51,300 9,690 Total 114,570 liters