Refer to the data in Problem 9-18. Limpio, Inc., also uses two different types of direct labor

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Refer to the data in Problem 9-18. Limpio, Inc., also uses two different types of direct labor in producing the cleansing chemical: mixing and drum-filling labor (the completed product is placed into 50-gallon drums). For each batch of 20,000 gallons of direct materials input, the following standards have been developed for direct labor:

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

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Cost Management Accounting And Control

ISBN: 9780324233100

5th Edition

Authors: Don R. Hansen, Maryanne M. Mowen

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