Flathead Music uses two different types of labour. In the last production period, they used 4,600 hours

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Flathead Music uses two different types of labour. In the last production period, they used 4,600 hours of technician I time and 2,200 hours of technician II time. The standard pay rates are $15 per technician I hour and $18 per technician II hour. At Flathead Music the standard is to use 1.5 hours of labour per unit produced; 1 hour of technician I and ½ hour of technician II time. During this production period 4,500 units were produced. 


Required:

A. Calculate the mix and yield variances for technician I.

B. Calculate the mix and yield variances for technician II.

C. Calculate the total mix and yield variances.

D. Write a brief report to management explaining what happened during this production period.

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Related Book For  book-img-for-question

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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