$7-36$ Elena Martinez employs two workers in her wedding cake bakery. The first worker,

Gabrielle, has been making wedding cakes for $20$ years and is paid $$25$ per hour. The second

worker, Joseph, is less experienced and is paid $$15$ per hour. One wedding cake requires, on

average, $6$ hours of labour. The budgeted direct manufacturing labour quantities for one cake are

as follows:

That is$,$ each cake is budgeted to require $6$ hours of direct manufacturing labour, composed of

$50\%$ of Gabrielle's labour and $50\%$ of Joseph's, although sometimes Gabrielle works more hours

on a particular cake and Joseph less, or vice versa, with no obvious change in the quality of the

cake.

During the month of May, the bakery produces $50$ cakes. Actual direct manufacturing labour

costs are as follows:

Required

What is the budgeted cost of direct manufacturing labour for $50$ cakes?

Calculate the total direct manufacturing labour price and efficiency variances. For the $50$

cakes, what is the total actual amount of direct manufacturing labour used?

What is the actual direct manufacturing labour input mix percentage? What is the

budgeted amount of Gabrielle's and Joseph's labour that should have been used for the

$50$ cakes?

Calculate the total direct manufacturing labour mix and yield variances. How do these

numbers relate to the total direct manufacturing labour efficiency variance? What do

these variances tell you?