Labor mix and yield variances The Bloomington Park Department plans to offer free swimming lessons to children under 14 years of age who want them. The manager of the department estimates that 6,000 children will participate in the lessons. Lessons are offered daily throughout the week to accommodate the schedules of all interested people. The parks depart- ment plans to hire as many as 15 full-time instructors to work in the swimming lessons program. The remaining needs will be filled by 25 associate instructors. The instructors are local area university students. The park department plans to pay the full-time instructors $2,500 for the summer and the associate instructors $1,500 for the summer.

When the summer arrived, 1,200 more children than expected participated in the free summer swim program. Additional personnel had to be hired to teach all of the students and the average rate paid to instructors was somewhat different than expected. The actual personnel costs and numbers were:

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REQUIRED Full-time instructors: 22 people at a cost of $2,700 each Associate instructors: 21 people at a cost of $1,400 each a. Compute the labor rate variance for each class of instructor and in total. b. Compute the labor mix and yield variances. c. Compute the expected and the actual instructor cost per student.