Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Montecino Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: Labor Type
Montecino Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards:
Labor Type | Standard Mix | Standard Unit Price | Standard Cost | |||
Cutting | 500 hours | $7.50 per unit | $3,750 | |||
Setup | 125 hours | 5.00 per unit | $ 625 | |||
Yield | 3,125 units |
During July, the following actual production information was provided:
Labor Type | Actual Mix | |
Cutting | 4,375 hours | |
Setup | 1,875 hours | |
Yield | 28,125 units |
What is the Labor mix variance?
a.$3,750(U)
b.$1,563(F)
c.$3,750(F)
d.$1,563(U)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started