Question
Redfield Company uses two types of direct labor for the manufacturing of its products: fabricating and assembly. Redfield has developed the following standard mix for
Redfield Company uses two types of direct labor for the manufacturing of its products: fabricating and assembly. Redfield has developed the following standard mix for direct labor, where output is measured in units.
Direct Labor Type | Mix | SP | Standard Cost | ||
Fabricating | 2 hrs. | $25 | $50 | ||
Assembly | 3 | 13 | 39 | ||
Total | 5 hrs. | $89 | |||
Yield | 25 units |
During the second week in April, Redfield produced the following results:
Direct Labor | Type Actual Mix | ||
Fabricating | 25,000 hrs. | ||
Assembly | 55,000 | ||
Total | 80,000 hrs. | ||
Yield | 395,000 units |
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. $
Favorable or Unfavorable or Not applicable
4. Calculate the direct labor mix variance. $
Favorable or Unfavorable or Not applicable
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
1 Calculate the yield ratio To calculate the yield ratio divide the actual yield by the standard yield Actual Yield 395000 units Standard Yield 25 units 80000 hrs 5 hrs 400000 units Yield Ratio Actual ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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