Direct Labor Efficiency Variance, Direct Labor Mix and Yield Variances Vet-Pro, Inc., produces a veterinary grade anti-anxiety mixture for pets with behavioral problems. Two chemical solutions, Aranol and Lendyl, are mixed and heated to produce a chemical that is sold to companies that produce the anti-anxiety pills. The mixture is produced in batches and has the following standards: Direct Standard Unit Standard Material Standard Mix Price Cost 3,000 gallons $4.00 per gallon $12,000 Aranol 102,000 6.00 Lendyl 17,000 $114,000 20,000 gallons Total Yield Durig March, the foliowing actual production information was provided 16,000 gallons Actual Mix 60,000 gallons 140,000 200,000 gallons 166,000 gallons Direct Material Aranol Lendyl Total Yield Vet-Pro, Inc., also uses two different types of direct labor in producing the anti-aniety mixture: mixing and drum-filling labor (the completed product is placed into 50-gallon drums). For each batch of 20,000 gallons of direct materials input, the following standards have been developed for direct labor: Direct Labor Type Mixing Mix SP Standard Cost 2,000 hrs. $14.00 $28,000 1,400 $39,400 Drum filing 1,200 9.50 3,200 hrs. Total Yield The actual direct labor hours used for the output produced in March are also provided: 16,000 gallons Direct Labor Type Mix ) Mixing 18,000 hrs. 12,000 Drum filling 30,000 hrs Total 158,400 gallons Yield Required 1. Compute the direct labor mix and yield variances. (Round standard price of yield to four significant digits and mix proportion to three significant digits. Use the rounded numbers in the subsequent computations.) s( s 26,040 x m)v Favorable variance 3,375F Yield variance Favorable, 2. Compute the total direct labor efficiency variance. 27,435 X Favorable v