QUESTION A: Mix and yield variances Massimo Salata Inc. blends several varieties of salad bases for wholesale to delis and restaurants across Western Canada. Anna, the production manager would like to assess the success of one of its new products called the Mediterranean Blend'. She put Fahim, a culinary expert in charge of determining the mix of the salad ingredients. She asked Fahim to prepare the best mix based on cost and taste. Arthur, one of the purchasing agents oversees finding the best vegetables as ingredients in the mix. Callie, the cost accountant, worked with Fahim and Arthur to determine the budget at the beginning of production. To produce 160 kilograms of Mediterranean Blend salad mix requires the following: BUDGET kg Price required Ingredient per kg Total 60 Celery $ 1.06 $ 63.60 40 Pepper $ 1.35 $ 54.00 100 Cucumber $ 1.48 $ 148.00 200 $ 265.60 No inventories of salad ingredients are kept. Purchases are made as needed, so all price variances are related to direct ingredients used. The actual direct ingredients used to produce 81,000 kilograms of Mediterranean Blend salad base for the first quarter of operations were: ACTUAL kg used Ingredient 27,300 Celery 23,100 Pepper 54,600 Cucumber 105.000 Price per kg $ 1.10 $ 1.25 $ 1.45 Total 30,030 $ 28,875 $ 79,170 $ 138,075 1. Calculate the direct ingredients rate and efficiency variance for each ingredient and in total. (show calculations below) Direct materials rate variance Celery Pepper Cucumber TOTAL Direct materials efficiency variance Celery Pepper Cucumber I TOTAL 2. Calculate the direct materials mix and yield variance for each ingredient and in total. (show calculations below) Direct materials mix variance Celery Pepper Cucumber TOTAL Direct materials yield variance Celery 1 Pepper Cucumber TOTAL