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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

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