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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
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 Aranol Standard Mix 2,400 gallons Standard Unit Price Standard Cost $6.00 per gallon $14,400 Lendyl 17,600 8.00 140,800 Total 20,000 gallons $155,200 Yield 16,000 gallons During March, the following actual production information was provided: Direct Material Aranol Lendyl Total Actual Mix 56,000 gallons 144,000 200,000 gallons Yield Required: 168,000 gallons 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 Yield variance 2. Compute the total direct materials usage variance for Aranol and Lendyl. Favorable Unfavorable
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