Direct Labor Mix and Yield Variances Delano Company uses two types of direct labor for...
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Accounting
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 Cost
Fabricating
2
hrs.
$25
$50
Assembly
3
12
36
Total
5
hrs.
$86
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. $ per unit of yield
3. Calculate the direct labor yield variance. $ Unfavorable
4. Calculate the direct labor mix variance. $ Favorable
Answer & Explanation
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