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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 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 Standard Material Mix Aranol 3,000 Lendyl Total 17,000 Direct Standard Unit Price 20,000 gallons Standard Cost $4.00 6.00 per gallon gallons Yield 16,000 gallons During March, the following actual production information was provided: $ 12,000 102,000 $ $114,000

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 Standard Material Mix Aranol 3,000 Lendyl Total 17,000 Direct Standard Unit Price 20,000 gallons Standard Cost $4.00 6.00 per gallon gallons Yield 16,000 gallons During March, the following actual production information was provided: $ 12,000 102,000 $ $114,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 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 Standard Material Mix Aranol 3,000 Lendyl 17,000 Total Yield Aranol Lendyl Total Yield 20,000 Standard Unit Price gallons 16,000 gallons During March, the following actual production information was provided: Direct Material Actual Mix Yield variance gallons Standard Cost $4.00 140,000 6.00 60,000 gallons per gallon 200,000 gallons 166,000 gallons $ Favorable 12,000 Favorable 102,000 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 $ $ 2. Compute the total direct materials usage variance for Aranol and Lendyl. $ Favorable $ $114,000
Transcribed Image Text: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 Standard Material Mix Aranol 3,000 Lendyl 17,000 Total Yield Aranol Lendyl Total Yield 20,000 Standard Unit Price gallons 16,000 gallons During March, the following actual production information was provided: Direct Material Actual Mix Yield variance gallons Standard Cost $4.00 140,000 6.00 60,000 gallons per gallon 200,000 gallons 166,000 gallons $ Favorable 12,000 Favorable 102,000 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 $ $ 2. Compute the total direct materials usage variance for Aranol and Lendyl. $ Favorable $ $114,000
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