Ruby Snacks produces snack mixes for the gourmet and natural foods market.

Its most popular product is Tempting Trail Mix, a mixture of peanuts, dried cranberries, and chocolate pieces. For each batch, the budgeted quantities and budgeted prices are as follows:

	Quantity per Batch	Price per Cup
Peanuts	60 cups	$1
Dried cranberries	30 cups	$3
Chocolate pieces	10 cups	$4

In the current period, Ruby's Snacks made 180 batches of Tempting Trail Mix with the following actual quantity, cost, and mix of inputs: Small changes to the standard mix of direct material quantities do not significantly affect the overall end product. In addition, not all ingredients added to production end up in the finished product, as some are rejected during inspection.

	Actual Quantity	Actual Cost	Actual Mix
Peanuts	12,505 cups	$11,255	61%
Dried cranberries	5,330 cups	17,109	26%
Chocolate pieces	2,255 cups	8,862	11%
Total actual	20,500 cups	$37,226	100%

1.	What is the budgeted cost of direct materials for the 180 batches?
2.	Calculate the total direct materials efficiency variance.
3.	Calculate the total direct materials mix and yield variances.
4.	How do the variances calculated in requirement 3 relate to those calculated in requirement 2? What do the variances calculated in requirement 3 tell you about the 180 batches produced this period? Are the variances large enough to investigate?