Labor mix and yield variance analysis Alexander Kent Corporation makes modular and mobile homes. The company uses standard costs to monitor and control all of its production activities. Electricians and apprentice electricians install electrical fixtures and appliances. Labor standards for the installation of all electrical items on the Medeor Model are 12 hours of electrician time and 8 hours of apprentice time. Electricians are paid $16 per hour and apprentices are paid $7 per hour.

During the first quarter of 1992, the company made 56 Kent mobile homes, which was a slight decline from expectations. As a result, some of the apprentice electricians were laid off during the period, resulting in a higher proportion of electrician labor than standard. There were 810 electrician hours worked on the 56 units and 230 hours of apprentice labor.

Transcribed Image Text:

REQUIRED a. Compute the labor mix and yield variance for the period. b. Interpret the variance information you prepared.