Question
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
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 | $6.00 | per gallon | $ | 16,800 |
Lendyl | 17,200 | 8.00 | 137,600 | |||
Total | 20,000 | gallons | $ | 154,400 | ||
Yield | 16,000 | gallons |
During March, the following actual production information was provided:
Direct Material | Actual Mix | |
Aranol | 56,000 | gallons |
Lendyl | 144,000 | |
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 =
Yield variance =
2. Compute the total direct materials usage variance for Aranol and Lendyl.
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