Direct Materials Usage Variance, Direct Materials 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 Material Standard Mix Standard Unit Price Standard Cost

Aranol $2,800$ gallons $$6\mathrm{.}00$ per gallon $$16,800$

Lendyl $17,2008\mathrm{.}00137,600$

Total $20,000$ gallons $$154,400$

Yield $16,000$ gallons

During March, the following actual production information was provided:

Direct Material Actual Mix

Aranol $48,000$ gallons

Lendyl $152,000$

Total $200,000$ gallons

Yield $164,000$ gallons

Required:

$1.$ Compute the direct materials mix and yield variances. In your computations, round the standard cost of the yield to $3$ decimal places. Use rounded number in the subsequent computations.

Mix variance $fill in the blank $1$

$40,000$

Favorable

Yield variance $fill in the blank $3$

$2,172,267$

Favorable

$2.$ Compute the total direct materials usage variance for Aranol and Lendyl.

$fill in the blank $5$

$1,168,000$

Favorable