Mammoth Breweries is a local microbrewery that makes a single kind of beer.One of the main raw materials needed in the brewing process is Hops.During the year, Mammoth changed the mix of Low quality and High quality Hops in their brewing process.

Budgeted cost for a standard barrel is as follows:

Amount (in kg) Price per kg

Low Quality 10kg $4.00

High Quality 15kg $5.00

Amount Purchased Price paid Amount used

Low Quality 130,000 kg $3.98/kg 124,138 kg

High Quality 240,000kg $4.80/kg 230,542 kg

Actual production was 15,000 barrels - this was 2,000 barrels less than planned.

Required

Calculate the following:

A.Direct Material Quantity (Efficiency)Variances

B.Direct Material Mix Variances

C.Direct Material Yield Variances

D.Was it a good decision to change the mix?