II p6 (c) Material Usage Variance Standard Quantity . Actual Quantity X 7.50 (300 - 320) Y = 10 (400 - 480) Z = 12.50 (500 - 420) Material Mix Variance 11 II 11 11 11 Standard X Price SP (SO - AQ) Rs. 150 (A) Rs. 800 (A) Rs. 1000 (F) Rs. 50 (F) Actual (d) Material Mix Variance = Quantity X 7.50 (305 - 320) Y = 10 (407 - 480) Z = 12.50 (508 - 420) Material Mix Variance Standard Revised Standard Price Quantity SP (RSQ-AQ) Rs. 112.50 (A) Rs. 730 (A) Rs. 1100 (F) Rs. 257.50 (F) Rs. X Y Z products Company produces a gasoline additive Gas Gain. This product increases engine efficiency and improves gasoline mileage by creating a more complex 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 controls are not effective, there can be loss of output and efficiency. The Standard cost of producing a 500 litre batch of Gas Gain is Rs.6075. The Standard Material Mix and related standard cost of each chemical used in a 500 litre batch as follows: Chemicals Mix Litres Standard Purchase Standard Cost Price Rs. Echol 200 9 1800 Protex 100 19.125 1912.50 Benz 250 6.75 1687.50 CT - 40 50 13.50 675 Total 600 6075 The quantities of chemicals purchased and used during the current production period are shown below. A total of 140 batches of Gas Gain were manufactured during the current production period. X Y Z products company determines its costs and chemical usage variations at the end of each production period. Chemical Quantity used (in Lires) Echol 26,600 Protex 12,880 Benz 37,800 CT-40 7,140 Total 84,420 Required : Compute the total material usage variance and then breakdown this variance into mix and yield components