I need some help with Chapter 7 problem 39 Direct labor variances:price, efficiency, mix, and yield. (1) It is asking what is the budgeted cost of direct labor for 25 guitars? (2) Calculate the total direct labor price and efficiency variances. (3) For the 25 guitars, what is the total actual acmount of direct labor used? What is the actual direct labor input mix percentage? What is the budgeted amount of George's and Earl's labor that should have been used for the 25 guitars? (4) Calculate the total direct labor mix and yield variances. How do these numbers relate to the total direct labor efficiency variance? What do these variances tell you?

Thank you for your help

Given Numbers

George 6 hours $30 per hour Cost of Guitar $180, Earl 4 hours $20 per hour $80 Cost of guitar

Geroge (145 hours) = $4350 Earl (108 hours) = 2,160 Total actual direct labor costs $6,510

That is, each guitar is budgeted to require 10 hours of direct labor, composed of 60% of George's labor and 40% of Earls labor, although sometimes Earl works more hours on a particular guitar and George less, or vica versa, with no obvious change in the quailty or function of the guitar