. Compute the direct labor mix and yield variances. (Round standard price of yield to four significant digits and mix proportion to three significant digits. Use the rounded numbers in the subsequent computations.) Mix variance $fill in the blank 1 Favorable Yield variance $fill in the blank 3 Unfavorable 2. Compute the total direct labor efficiency variance. $fill in the blank 5 Unfavorable
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 | ||||
| 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). For each batch of 20,000 gallons of direct materials input, the following standards have been developed for direct labor:
| Direct Labor Type | Mix | SP | Standard Cost | |||
| Mixing | 2,000 | hrs. | $13.00 | $26,000 | ||
| Drum filling | 1,200 | 9.40 | 11,280 | |||
| Total | 3,200 | hrs. | $37,280 | |||
| Yield | 16,000 | gallons |
The actual direct labor hours used for the output produced in March are also provided:
| Direct Labor | Type Mix | |
| Mixing | 18,000 | hrs. |
| Drum filling | 12,000 | |
| Total | 30,000 | hrs. |
| Yield | 158,800 | gallons |
1. Compute the direct labor mix and yield variances. (Round standard price of yield to four significant digits and mix proportion to three significant digits. Use the rounded numbers in the subsequent computations.)
| Mix variance | $fill in the blank 1 | Favorable |
| Yield variance | $fill in the blank 3 | Unfavorable |
2. Compute the total direct labor efficiency variance.
$fill in the blank 5 Unfavorable
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