To help control operations, Cabo Company developed a standard costing system in its job shop. Data for a recent job follows.

 

Required: 

A. Calculate the direct labour price variances.

B. Calculate the direct labour efficiency variances.

C. Calculate the direct labour mix and yield variances.

D. Provide one possible explanation for each variance.

E. Are these results consistent with Cabo Company€™s low-cost product strategy? Why or why not? Make recommendations for future labour scheduling.

Transcribed Image Text:

Standard Actual Direct labour hours (G1) 1,900 1,840 $38,000 $37,000 Direct labour dollars (G1) Direct labour hours (G2) 475 560 $11,875 $15,400 Direct labour dollars (G2) Units produced 380 380