7-36 Direct manufacturing labour variances: price, efficiency, mix, and yield. (LO 3) 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: Gabrielle Quantity 3 hours 3 hours Joseph Total 6 hours 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: Gabrielle (140 hours) Joseph (165 hours) Total actual direct-labour cost $3,500 2,475 $5,975 Required 1. What is the budgeted cost of direct manufacturing labour for 50 cakes? 2. Calculate the total direct manufacturing labour price and efficiency variances. 3. 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? 4. 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