Delano Company uses two types of direct labor for the manufacturing of its products:

fabricating and assembly. Delano has developed the following standard mix for direct labor, where output is measured in number of circuit boards.

Required:
1. Calculate the yield ratio.
2. Calculate the standard cost per unit of the yield.
3. Calculate the direct labor yield variance.
4. Calculate the direct labor mix variance.LO1

Transcribed Image Text:

Direct Labor Type Fabricating Assembly Total Yield Mix SP Standard Cost 2 hrs. $20 $40 3 12 36 5 hrs. $76 25 units During the second week in April, Delano produced the following results: Direct Labor Type Actual Mix Fabricating Assembly Total Yield 20,000 hrs. 45,000 65,000 hrs. 320,000 units