Direct Materials Usage Variance, Direct Materials Mix and Yield VariancesVet-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 soldto companies that produce the anti-anxiety pills. The mixture is produced in batches and has thefollowing standards:Direct Material Standard Mix2,000 gallons18,00020,000 galloks16,000 gallonsAranolLendylTotalAranolLendylTotalYieldDuring March, the following actual production information was provided:Direct MaterialYieldRequired:Standard Unit Price$5.00 per gallon7.00Mix varianceYield varianceActual MixStandard Cost58,000 gallons142,000200,000 gallons168,000 gallons$10,000126,000$136,0001. Compute the direct materials mix and yield variances. In your computations, round thestandard cost of the yield to 3 decimal places. Use rounded number in the subsequentcomputations.=2. Compute the total direct materials usage variance for Aranol and Lendyl.

Variance analysis is done for the internal purpose by the management accounting department. The…

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 2,000 gallons 18,000 20,000 galloks 16,000 gallons During March, the following actual production information was provided: Aranol Lendyl Total Yield Standard Unit Price $5.00 per gallon 7.00 Standard Cost $10,000 126,000 $135,000

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 2,000 gallons 18,000 20,000 galloks 16,000 gallons During March, the following actual production information was provided: Aranol Lendyl Total Yield Standard Unit Price $5.00 per gallon 7.00 Standard Cost $10,000 126,000 $135,000

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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