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	3,000	gallons	$4.00	per gallon	$	12,000
Lendyl	17,000		6.00			102,000
Total	20,000	gallons			$	$114,000
Yield	16,000	gallons

During March, the following actual production information was provided:

Direct Material	Actual Mix
Aranol	60,000	gallons
Lendyl	140,000
Total	200,000	gallons
Yield	166,000	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	$	Favorable
Yield variance	$	Favorable

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