Question: Mannhatten Peanuts Limited buys raw nuts and processes them for re-sale. The follow standards apply to labour Labour Hrs Mix Pay rate Std Cost Shelling
| Mannhatten Peanuts Limited buys raw nuts and processes them for re-sale. | |||||
| The follow standards apply to labour | |||||
| Labour | Hrs | Mix | Pay rate | Std Cost | |
| Shelling | 3 | 0.6 | 8 | 24 | |
| Mixing | 2 | 0.4 | 15 | 30 | |
| Total | 5 | 54 | |||
| The above labour is expect to yield | 120 | kgs | |||
| Mannhatten processed 1,600kg of nuts and produced the following actual results: | |||||
| Hrs | |||||
| Shelling | 20 | ||||
| Mixing | 30 | ||||
| 50 | |||||
| Output | 1300 | kgs | |||
Calculate the labour mix variance.
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