Refer to the data in Problem 9.34. Vet-Pro, Inc., also uses two different types of direct labor
Question:
Refer to the data in Problem 9.34. Vet-Pro, Inc., also uses two different types of direct labor in producing the anti-anxiety mixture: mixing and drum filling labor (the completed product is placed into 50-gallon drums). For each batch of 20,000 gallons of direct materials input, the following standards have been developed for direct labor:
The actual direct labor hours used for the output produced in March are also provided:
Required:
1.Compute the direct labor mix and yield variances. (Round standard price of yield to four significant digits.)
2. Compute the total direct labor ef
ciency variance. Show that the total direct labor efficiency variance is equal to the sum of the direct labor mix and yield variances.
Step by Step Answer:
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen