HANA Sauce Sdn. Bhd. (HANA) produces chilli sauce for local market. HANA mixes three types of chillies: red chilli, green chilli and bird's eye chilli to produce chilli sauce of a specified consistency, colour and taste. HANA's production standard requires 1.60 kilograms of chillies to produce 1 litre of chilli sauce: 50% of the chillies are budgeted to be red chilli, 30% green chilli, and 20% bird's eye chilli. The direct material inputs budgeted to produce 1 litre of chilli sauce are as follows: 0.80 (50% of 1.8) kilogram of red chilli at RM7 per kilogram RM 5.60 0.48 (30% of 1.8) kilogram of green at RM8 per kilogram 3.84 0.32 (20% of 1.8) kilogram of bird's eye chilli at RM9 per kilogram 2.88 Total budgeted cost of 1.6 kilograms of chillies 12.32 HANA uses fresh chillies to make chilli sauce, no inventory of chillies are kept. Purchases are made as needed, so all price variance relate to chillies purchased and used. Actual results for December 2020 show that a total of 8,500 kilograms of chillies were used to produce 4,000 litres of chilli sauce. RM 3,250 kilograms of red chilli at actual cost of RM7 per kilogram 2,275 kilograms of green chilli actual cost at RM8.20 per 22,570.00 18,655.00 975 kilograms of bird's eye chilli at actual cost of RM9.60 per kilogram 9,360.00 Total cost 50,585.00 Required: 8) Compute the direct material price variance for green chilli. (3 marks) Compute a standard mix for each of type of chilli to produced 400 kilograms of chilli b) sauce. (3 marks) c) Compute the direct material mix variance using the individual standard price method. (7 marks) Compute the direct materials yield variance using the individual standard price d) method. e) (7 marks) A negative efficiency variance on direct material doesn't have to mean that the department performed inefficiency. Discuss. (5 marks)