Bison Burts uses two different grade scales of labour, GS4 and GS5. In the last production period

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Bison Burt’s uses two different grade scales of labour, GS4 and GS5. In the last production period they used 2,500 hours of GS4 and 1,500 hours of GS5. The standard pay rates are $11per GS4 hour and $15 per GS5 hour. At Bison Burt’s the standard is to use 2 hours of labour per unit produced; 60% GS4 and 40% GS5. During this production period 2,100 units were produced. What are the total mix and yield variances?

a. $2,700 U; $2,520 U

b. $400 F; $2,520 F

c. $1,500 F; $1,200 F

d. $2,700 F; $120 U

e. $2,700 U; $1,200 U

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Cost Management Measuring, Monitoring And Motivating Performance

ISBN: 1601

3rd Canadian Edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook

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