Granoline SA manufactures cereal products such as multi-grain porridge and breakfastcereals.

It makes multi-grain porridge by blending barley, wheat and rye. Budgeted costs to produce 100 000 kg of multi-grain porridge in November 2022 are as follows:

Required

1 Calculate the total direct materials price and efficiency variances for November 2022.
2 Calculate the total direct materials mix and yield variances for November 2022.
3 Comment on your results in requirements 1 and 2.

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45 000 kg of barley at 0.30 per kg 180 000 kg of wheat at 0.26 per kg 75 000 kg of rye at 0.22 per kg Actual costs in November 2022 are: 62 000 kg of barley at 0.28 per kg 155 000 kg of wheat at 0.26 per kg 93 000 kg of rye at 0.20 per kg 13.500 46 800 16 500 17 360 40 300 18 600