Nilo use four main ingredients to produce the chocolate flavoured malt drink namely sugar, milk powder, malt barley and cocoa. During the first part of the production process the malt barley and sugar is mixed to form a thick syrup. The water content is then evaporated by using a vacuum dryer to reduce the mix to a granular form.

The standard mix of malt barley and sugar is as follow:

Malt barley

$5kg$ at a cost of $R20\frac{p}{k}g$

Sugar $15kg$ at a cost of R$15$ p$/$kg

In May $25000kg$ of Nilo powder was produced in granular form. The actual mixed used in production in May was:

$9800kg$ of Malt barley and

$16500kg$ of sugar

Required:

$8\mathrm{.}1$ Determine the material mix variance for the Nilo power

$(5)$

$8\mathrm{.}2$ Determine the material yield variance for the Nilo power

$(5)$