Blitz Inc. uses three different substitutable products in the production process. In the last production period, they used a total of 555,000 litres: 138,750 litres of solution E, 222,000 litres of solution T; and 194,250 litres of solution A. The standard cost card follows:

 

During this production period, 11,000 batches were produced.

Required:

A. Calculate the materials quantity variance.

B. Calculate the mix and yield variances for each solution.

C. Calculate the total mix and yield variances.

D. Write a memo explaining to management what happened during this production period.

Standard Quantity 10 litres Cost $0.50 per litre $0.10 per litre $0.35 per litre Solution E $ 5.00 21 litres Solution T Solution A $ 2.10 $ 6.65 19 litres $13.75