Vet-Pro, Ic., produces a veterinary grade anti-anxiety mixture for pets with behavioral prob- lems. 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 S 12,000 102,000 S114,000 Aranol $4.00 per gallon 3,000 gallons 17,000 20,000 gallons 16,000 gallons Lendyl Total 6.00 Yield During March, the following actual production information was provided: Direct Material Actual Mix 60,000 gallons 140,000 Aranol Lendyl 200,000 gallons 166,000 gallons Total Yield 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 direct materials usage variance is equal to the sum of the direct materials mix and yield variances.

Vet-Pro, Ic., produces a veterinary grade anti-anxiety mixture for pets with behavioral prob- lems. 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 S 12,000 102,000 S114,000 Aranol $4.00 per gallon 3,000 gallons 17,000 20,000 gallons 16,000 gallons Lendyl Total 6.00 Yield During March, the following actual production information was provided: Direct Material Actual Mix 60,000 gallons 140,000 Aranol Lendyl 200,000 gallons 166,000 gallons Total Yield 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 direct materials usage variance is equal to the sum of the direct materials mix and yield variances.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I would like to get answers for a), b) and c) the question is attached below...