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The Becton Enterprises (BE) Produces a Gasoline Additive, Charger Power

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The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective.
The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are:  Chemical Std input quantity  Std cost per liter Total cost  Echol 200$0.200$40.00 Protex 1000.42542.50 Benz 2500.15037.50 CT-40 500.30015.00600$135.00\begin{array}{lrrrrr}\text { Chemical }&\text {Std input quantity } & \text { Std cost per liter }&\text {Total cost }\\\text { Echol } & 200 & \$ 0.200 & \$ 40.00 \\\text { Protex } & 100 & 0.425 & 42.50 \\\text { Benz } & 250 & 0.150 & 37.50 \\\text { CT-40 } & \underline{ 50} & 0.300 & \underline{15.00} \\& \underline{ \underline{600}}&& \underline{ \underline{\$135.00}}\end{array}

The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 140 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs and chemical usage variations at the end of the production period.  Chemical  Quantity Purchased  Total Cost  Quantity Used  Echol 25,000$5,36526,600 Protex 13,0006,24012,880 Benz 40,0005,84037,800 CT-40 7,5002,2207,14085,50084,420\begin{array} { l r r r r } \text { Chemical } & \text { Quantity Purchased } & { \text { Total Cost } } & \text { Quantity Used } \\\text { Echol } & 25,000 & \$ 5,365 & 26,600 \\\text { Protex } & 13,000 & 6,240 & 12,880 \\\text { Benz } & 40,000 & 5,840 & 37,800 \\\text { CT-40 } & 7,500 & 2,220 & 7,140 \\ & 85,500 & &84,420 \\& & &\end{array}
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What is the total material mix variance?


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