per Liter [Fact Pattern #2] Energy Modification 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. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Gas Gain is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are presented below. Standard Standard Input Cost Total Quantity Chemical in Liters Cost Echol 200 $.200 $ 40.00 Protex 100 425 42.50 Benz 250 .150 37.50 CT-40 50 .300 15.00 600 $135.00 Energy Modification expected to produce 142 batches during the month just ended. The quantities of chemicals purchased and actually used during the month are shown in the schedule below. A total of 140 batches of Gas Gain were manufactured. The controller of Energy Modification determines its costs and chemical usage variations at the end of each month. Quantity Total Quantity Purchased Purchase Used Chemical (Liters) Price (Liters) Echol 25,000 $ 5,365 26,600 Protex 13,000 6,240 12,880 Benz 40,000 5,840 37,800 CT-40 7,500 2.220 7,140 Total 85,500 $19,665 84,420 [5] (Refers to Fact Pattern 2) What is the purchase price variance for Protex? A. $365 unfavorable. B. $715 unfavorable. C. $160 favorable. D. $30 favorable