2. Direct Materials Mix and Yield Variance (30 points) Penny's Pies uses three different kinds of apples in its apple pies. For the best taste each pie should have 4 cups of macintosh apples, 2 cups of courtland apples and 2 cups of granny smith apples. Apples are purchased by the bushel. The budgeted cost per bushel of macintosh, courtland and granny smith apples is $40, $48 and $60, respectively. A bushel is 48 pounds and each pound of apples yields 3 cups prepared apples. During the last quarter of the year, Penny expects bake 30,000 apple pies. At the end of December, Penny baked and sold 27,000 apple pies. She purchased and used 870 bushels of macintosh, 348 bushels of courtland and 232 bushels of granny smith. The macintosh cost $32,300, the courtland cost $17,500 and the granny smith cost $16,250. a. Calculate the price and efficiency variances for the apples. b. Calculate the mix and yield variances for the apples. c. Explain the mix and yield variances