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	3,200	gallons	$5.00	per gallon		$16,000
Lendyl	16,800		7.00			117,600
Total	20,000	gallons				$133,600
Yield	16,000	gallons

During March, the following actual production information was provided:

Direct Material	Actual Mix
Aranol	54,000	gallons
Lendyl	146,000
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	$fill in the blank 1	FavorableUnfavorable
Yield variance	$fill in the blank 3	FavorableUnfavorable

2. Compute the total direct materials usage variance for Aranol and Lendyl. $fill in the blank 5

FavorableUnfavorable

Check My Work