Question

1. 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		15	45
   Total	5	hrs.		$95
   Yield	25	units

   During the second week in April, Delano produced the following results:

   Direct Labor	Type Actual Mix
   Fabricating	25,000	hrs.
   Assembly	50,000
   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.
   $  

   4. Calculate the direct labor mix variance.
   $  

Check My Work

Answer 1

1. Yield ratio = Total yield / Total hours = 370,000 / 75,000 = 4.94 ~~~ 5

2. Cost per unit = Total cost / Total yield = $ 95 / 25 = 3.80

3. Direct labor yield variance = (Actual yield - Standard yield) x Std cost = (375,000 - 370,000) x 3.80 = $ 19,000

4.

A	B	(a-b)
Standard	Actual Mix	Difference	SR
30000	25000	5000	25	125000
45000	50000	-5000	15	-75000
Labor Mix variance				50000

Hope this helps, if not please let know in comments. Please mark the answer as helpful for the efforts put, it will mean alot. Thanks