Direct Labor Mix and Yield Variances

1. Delano Company uses two types of direct labor for the manufacturing of its products: fabricating and assembly. Delano has developed the following standard mix for direct labor, where output is measured in number of circuit boards.

   Direct Labor Type	Mix		SP	Standard Cost
   Fabricating	2	hrs.	$20	$40
   Assembly	3		13	39
   Total	5	hrs.		$79
   Yield	25	units

   During the second week in April, Delano produced the following results:

   Direct Labor	Type Actual Mix
   Fabricating	20,000	hrs.
   Assembly	55,000
   Total	75,000	hrs.
   Yield	370,000	units

   Required:

   Instructions for parts 3 and 4: If a variance is zero, enter "0" and select "Not applicable" from the drop down box.

   1. Calculate the yield ratio.

   2. Calculate the standard cost per unit of the yield. Round your answers to the nearest cent.

   3. Calculate the direct labor yield variance.

   4. Calculate the direct labor mix variance.