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 Material	Standard Mix		Standard Unit Price		Standard Cost
Aranol	4,400	gallons	$6.00	per gallon		$26,400
Lendyl	15,600		8.00			124,800
Total	20,000	gallons				$151,200
Yield	16,000	gallons

During March, the following actual production information was provided:

Direct Material	Actual Mix
Aranol	72,000	gallons
Lendyl	128,000
Total	200,000	gallons
Yield	164,000	gallons

equired:

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	Favorable
Yield variance	$fill in the blank 3	Favorable

2. Compute the total direct materials usage variance for Aranol and Lendyl. $fill in the blank 5

Favorable