Sunshine Company manufactures a cleaning solvent. The company employs both skilled and unskilled workers. To produce one
Question:
Sunshine Company manufactures a cleaning solvent. The company employs both skilled and unskilled workers. To produce one 55-gallon drum of solvent requires Materials A and B as well as skilled labor and unskilled labor. The standard and actual material and labor information is presented below:
Standard:
Material A: 30.25 gallons @ P1.25 per gallon
Material B: 24.75 gallons @ P2.00 per gallon
Skilled Labor:4 hours @P12 per hour
Unskilled Labor:2 hours @P 7 per hour
Actual:
Material A: 10,716 gallons purchased and used @ P1.50 per gallon
Material B: 17,484 gallons purchased and used @ P1.90 per gallon
Skilled labor hours: 1,950 @ P11.90 per hour
Unskilled labor hours: 1,300 @ P7.15 per hour
During the current month Sunshine Company manufactured 500 55-gallon drums.
Round all answers to the nearest whole number/peso amount.
Required:
1.What is the total material price variance?
2.What is the total material mix variance?
3.What is the total material yield variance?
4.What is the total labor rate variance?
5.What is the total labor mix variance?
6.What is the total labor yield variance?