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 | 2,200 | gallons | $6.00 | per gallon | $13,200 | |
Lendyl | 17,800 | 8.00 | 142,400 | |||
Total | 20,000 | gallons | $155,600 | |||
Yield | 16,000 | gallons |
During March, the following actual production information was provided:
Direct Material | Actual Mix | |
Aranol | 44,000 | gallons |
Lendyl | 156,000 | |
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
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