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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 3,000 gallons $3.00 per gallon $9,000 Lendy 17,000 5.00 85,000 Total 20,000 gallons $94,000 Yield 16,000 gallons During March, the following actual production information was provided: Direct Material Actual Mix Aranol 56,000 gallons Lendy! 144,000 Total 200,000 gallons Yield 168,000 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 Favorable Yield variance Favorable 2. Compute the total direct materials usage variance for Aranol and Lendyl. Favorable Feedback Check My Work 1. Yield ratio = Total output = Total input Spy = Standard cost of the yield (equal to total cost of a standard batch divided by the amount of the yield) Yield variance = (Standard yield - Actual yield) x Spy

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