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:

During March, the following actual production information was provided:

Required:

1. Compute the direct materials mix and yield variances.

2. Compute the total direct materials usage variance for Aranol and Lendyl. Show that the total directmaterialsusagevarianceisequaltothesumofthedirectmaterialsmixandyieldvariances.

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Direct Material Standard Mix Standard Unit Price Standard Cost $4.00 per gallon S 12,000 3,000 gallons 17,000 20,000 gallons 16,000 gallons Aranol 6.00 Lendyl Total 102,000 S114,000 Yield