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**

CostFabricating 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 **Required:**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.

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