Mozambique Industries Uses Two Different Types of Labor to Manufacture

question 37

Essay

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

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