Exercise $17-37($Algo$)$ Labor Mix and Yield Variances $($LO $17-5)$

Pembridge Burritos has two categories of direct labor: unskilled, which costs $$16$ per hour, and skilled, which costs $$30$ per hour. Management has established standards per $$meal$,$ which has been defined as a typical meal consisting of a burrito and a drink. Standards have been set as follows:

$$

Skilled labor$2\mathrm{.}5$minutes per equivalent mealUnskilled labor$10\mathrm{.}0$minutes per equivalent meal

$$

For the year, Pembridge sold $87,000$ equivalent meals and incurred the following labor costs:

$$

Skilled labor$3,450$hours$ $98,450$Unskilled labor$15,100$hours$248,875$

$$

Required:

a$.$ Compute labor price and efficiency variances.

b$.$ Compute labor mix and yield variances.