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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 chemical

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 2,000 gallons $3.00 per gallon $ 6,000
Lendyl 18,000 5.00 90,000
Total 20,000 gallons $ 96,000
Yield 16,000 gallons

During March, the following actual production information was provided:

Direct Material Actual Mix
Aranol 42,000 gallons
Lendyl 158,000
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
Yield variance $fill in the blank 3

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

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