Organics Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting
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Question:
Organics Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards:
Labor Type | Standard Mix | Standard Unit Price | Standard Cost |
Cutting | 400 hours | $6.00 per unit | $2,400 |
Setup | 100 hours | 4.00 per unit | 400 |
Yield 2,500 units |
During July, the following actual production information was provided:
Labor Type | Actual Mix |
Cutting | 3,500 hours |
Setup | 1,500 hours |
Yield 22,500 units |
Required:
Calculate the labor mix and yield variances.
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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