Direct Labor Mix and Yield Variances

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	45,000
Total	65,000	hrs.
Yield	320,000	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. $ per unit of yield

3. Calculate the direct labor yield variance. $ Unfavorable

4. Calculate the direct labor mix variance. $ Favorable