Floro company has two types of direct labour for the production
of its items: Painting and Designing. Floro has developed the
following standard mix for direct labour, where the output is
measured using the number of route taken.
Direct labour type Mix Standard price Standard Cost
Painting 2 Hrs K20 K40
Designing 3 Hrs K12 K36
Total 5 Hrs K76
Yield 25 Units
During the second week in April, Floro produced the following
results:
DIRECT LABOUR TYPE ACTUAL MIX
Painting 20,000 hrs
Designing 45,000 hrs
Total 65,000 hrs
Yield 320,000 units
Required
1. Calculate the yield ratio.
2. Calculate the standard cost per unit of the yield.
3. Calculate the direct labour yield variance.
4. Calculate the direct labour mix variance.
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