Flathead Music uses two different types of labour. In the last production period, they used 4,600 hours
Question:
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.
Step by Step Answer:
Cost Management Measuring, Monitoring And Motivating Performance
ISBN: 1601
3rd Canadian Edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook