The Big Beer Company is a craft brewery in a small town in Eastern Ontario. Their signature beer is an Indian Pale Ale (IPA). Budgeted costs to produce a barrel of IPA are as follows:

Input	Quantity	Price	Total Standard Cost
Direct materials	10 kg of Cascade Hops	$5.00 per kg	$ 50
	8 kg of Centennial Hops	$6.50 per kg	52

They had budgeted to make 10,000 barrels of IPA this year.

Actual results for the year were as follows:

• Produced 11,000 barrels of IPA
• Direct material purchased:
  • 125,000 kg of Cascade Hops at $5.20/kg
  • 85,000 kg of Centennial Hops at $6.40/kg
• Direct materials used:
  • 126,000 kg of Cascade Hops
  • 80,000 kg of Centennial Hops

Required:

1. Calculate the following:
   1. Direct Material Quantity (Efficiency)Variance for Centennial Hops
   2. Direct Material Mix Variance of Cascade Hops
   3. Direct Material Yield Variance of Centennial Hops
2. Give a reason for the Direct Material Yield Variance of Centennial Hops calculated above