The Energy Products Company produces a gasoline additive, Gas Gain that increases engine efficiency and improves gasoline mileage. The actual and budgeted quantities (in litres) of materials required to produce Gas Gain and the budgeted prices of materials in August 2015 are as follows:

Required
1. Calculate the total direct materials efficiency variance for August 2015.
2. Calculate the total direct materials mix and yield variances for August 2015.
3. What conclusions would you draw from the variance analysis?

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Chemical Echol Protex Benz CT-40 Actual Quantity 24,080 15,480 36,120 10,320 Budgeted Quantity 25,200 16,800 33,600 8,400 Budgeted Rate S0.22 0.47 0.17 0.32