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)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

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 Labor Efficiency Variance, Direct Labor 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 $4.00 per gallon $ 12,000 Lendyl 17,000 6.00 102,000 Total 20,000 gallons $114,000 Yield 16,000 gallons During March, the following actual production information was provided: Direct Material Actual Mix Aranol 60,000 gallons Lendyl 140,000 Total 200,000 gallons Yield 166,000 gallons Vet-Pro, Inc., also uses two different types of direct labor in producing the anti-anxiety mixture: mixing and drum-filling labor (the completed product is placed into 50-gallon drums).…
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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: During March, the following actual production information was provided: 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.
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