Refer to the data in 9-6. Chemcobre, Inc., also uses two different types of labor in produc¬

ing the copper-leaching compound; mixing and drum-filling labor. For each batch of 10,000 gallons of material input, the following standards have been developed for labor:

The actual labor hours used for the output produced in March are also provided:

Required:
1. Compute the labor mix and yield variances.
2. Compute the total labor efficiency variance. Show that the total labor efficiency vari¬
ance is equal to the sum of the labor mix and yield variances.

Transcribed Image Text:

Labor Type Mix SP Standard Cost Mixing 1,000 hrs. $10.50 $10,500 Drum-filling 500 hrs. 6.00 3,000 Total 1,500 hrs. $13,500 Yield 9,000 gallons