Vet-Pro, Inc., produces a veterinary grade anti-anxiety mixture for pets with behavioral problems. Two chemical solutic chemical that is sold to companies that produce the anti-anxiety pills. The mixture is produced in batches and has the Direct Material Standard Mix Standard Unit Price Standard Cost Aranol 4,800 gallons $6.00 per gallon $28,800 Lendyl 15,200 8.00 121,600 Total 20,000 gallons $150,400 Yield 16,000 gallons During March, the following actual production information was provided: Direct Material Actual Mix Aranol 70,000 gallons Lendyl 130,000 Total 200,000 gallons
Vet-Pro, Inc., produces a veterinary grade anti-anxiety mixture for pets with behavioral problems. Two chemical solutic chemical that is sold to companies that produce the anti-anxiety pills. The mixture is produced in batches and has the Direct Material Standard Mix Standard Unit Price Standard Cost Aranol 4,800 gallons $6.00 per gallon $28,800 Lendyl 15,200 8.00 121,600 Total 20,000 gallons $150,400 Yield 16,000 gallons During March, the following actual production information was provided: Direct Material Actual Mix Aranol 70,000 gallons Lendyl 130,000 Total 200,000 gallons
Cornerstones of Cost Management (Cornerstones Series)
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Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 34P: Vet-Pro, Inc., produces a veterinary grade anti-anxiety mixture for pets with behavioral problems....
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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 Material
Standard Mix
Standard Unit Price
Standard Cost
Aranol
4,800 gallons
$6.00 per gallon
$28,800
Lendyl
15,200
8.00
121,600
Total
20,000 gallons
$150,400
Yield
16,000 gallons
During March, the following actual production information was provided:
Direct Material
Actual Mix
Aranol
70,000 gallons
Lendyl
130,000
Total
200,000 gallons
Yield
164,000 gallons](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f1cf787-d181-4611-9f83-a587357d56a8%2Fbf2aec6b-a317-43e4-827c-215cad2bc16b%2F3q5l8x_processed.png&w=3840&q=75)
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 Material
Standard Mix
Standard Unit Price
Standard Cost
Aranol
4,800 gallons
$6.00 per gallon
$28,800
Lendyl
15,200
8.00
121,600
Total
20,000 gallons
$150,400
Yield
16,000 gallons
During March, the following actual production information was provided:
Direct Material
Actual Mix
Aranol
70,000 gallons
Lendyl
130,000
Total
200,000 gallons
Yield
164,000 gallons
![Yield
164,000 gallons
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
Yield variance
2. Compute the total direct materials usage variance for Aranol and Lendyl.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f1cf787-d181-4611-9f83-a587357d56a8%2Fbf2aec6b-a317-43e4-827c-215cad2bc16b%2Fnfey3tp_processed.png&w=3840&q=75)
Transcribed Image Text:Yield
164,000 gallons
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
Yield variance
2. Compute the total direct materials usage variance for Aranol and Lendyl.
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