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Mozambique Industries Uses Two Different Types of Labor to Manufacture

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Essay

Mozambique Industries 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 200 hours $12.00 per unit $2,400 Setup 800 hours 8.00 per unit $6,400 Yiel d 4,000 units \begin{array}{l}\begin{array} { l r r r } \text { Labor Type } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \\\text { Cutting } & 200 \text { hours } & \$ 12.00 \text { per unit } & \$ 2,400 \\\text { Setup } & 800 \text { hours } & 8.00 \text { per unit } & \$ 6,400\end{array}\\\text { Yiel d 4,000 units }\end{array} During September, the following actual production in formation was provided:
 Labor Type  Actual Mix  Cutting 7,000 hours  Setup 3,000 hours \begin{array}{lr}\text { Labor Type } & \text { Actual Mix } \\\text { Cutting } & 7,000 \text { hours } \\\text { Setup } & 3,000 \text { hours }\end{array}
Yiel d 42,000 units
Required:
Calculate the labor mix and yield variances.

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Definitions:

Evenly Distributed

A condition where elements are spread out uniformly over a certain area or within a set.

Graphics

Visual elements such as pictures, charts, and graphs, used to illustrate or enhance text.

Positive Skew

A distribution shape where most values are clustered towards the left, with a long tail to the right.

Median

A statistical measure representing the middle value in a data set, where half the numbers are above and half are below.

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