Direct Labor Mix and Yield Variances
- Delano Company uses two types of direct labor for the manufacturing of its products: fabricating and assembly. Delano has developed the following standard mix for direct labor, where output is measured in number of circuit boards.
Direct Labor Type Mix SP Standard
Fabricating 2 hrs. $20 $40 Assembly 3 13 39 Total 5 hrs. $79 Yield 25 units
During the second week in April, Delano produced the following results:
Direct Labor Type Actual Mix Fabricating 20,000 hrs. Assembly 55,000 Total 75,000 hrs. Yield 370,000 units
Instructions for parts 3 and 4: If a variance is zero, enter “0” and select “Not applicable” from the drop down box.1. Calculate the yield ratio.
2. Calculate the standard cost per unit of the yield. Round your answers to the nearest cent.
3. Calculate the direct labor yield variance.
4. Calculate the direct labor mix variance.
Leave an answer