DeMarco Company uses two types of direct labor for the manufacturing of its integrated electronic components: soldering and testing. DeMarco has developed the following standard mix for direct labor, where output is measured in number of circuit boards.

During the second week in August, DeMarco produced the following results:
Labor Type Actual Mix
Soldering ...... 30,000 hrs.
Testing ....... 4,000
Total ....... 34,000 hrs.
Yield .......150,000 hours
Required:
1. Calculate the yield ratio.
2. Calculate the standard cost per unit of yield.
3. Calculate the direct labor yield variance.
4. Calculate the direct labor mixvariance.

Transcribed Image Text:

Direct Labor Type Soldering Testing Mix 4 hrs. 5 hrs 25 hours SP Standard Cost S64 $75 $16 Totals Yield