Question: A company's direct labor standards for a given operation and the actual results for the current period are provided below: Standard rates: Advanced: $
A company's direct labor standards for a given operation and the actual results for the current period are provided below:
Standard rates:
Advanced: $ per hour
Trained: $ per hour
Novice: $ per hour
Time to produce one unit:
One Advanced worker at minutes each
minutes per unit
Three Trained workers at minutes each
minutes per
unit
Two Novice workers at minutes each
minutes per unit
minutes per unit
Actual Results:
Units produced:
Labor used:
hours of Advanced workers
hours of Trained workers
hours of Novice workers
Required:
Be sure to indicate whether the variance is favorable or unfavorable.
a Compute the labor efficiency variances for each worker level.
b Compute the labor mix variances for each worker level.
c Compute the labor yield variances for each worker level.
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