Senocot Corporation Uses Two Different Types of Labour to Manufacture

question 24

Essay

Senocot Corporation uses two different types of labour to manufacture its product.The types of labour,Assembly and Finishing,have the following standards:
$\begin{array}{llrl}\text { Labour Type}&\text { Standard Mix }&\text { Standard Unit Price}&\text { Standard Cost}\\\text { Assembly } & 800 \text { hours } & \$ 12.00 \text { per unit } & \$ 9,600 \\\text { Finishing } & 200 \text { hours } & 8.00 \text { per unit } & \$ 1,600 \\& & &\\\text { Yield }&5000 \text { units }\end{array}$ During January,the following actual production information was provided:
$$\begin{array} { l l } \text { Labour Type } & \text { Actual Mix } \\\hline \text { Assembly } & 7,000 \text { hours } \\\text { Finishing } & 3,000 \text { hours } \\\\\text { Yield } & 45,000 \text { units }\end{array}$$ Calculate the labour efficiency and mix and yield variances.

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Definitions:

Gratuitous Agent

An agent who acts on behalf of another without receiving any compensation.

Consideration

A fundamental element of a contract, referring to something of value exchanged between parties, such as services, goods, or money.

Contractual Capacity

The legal ability to enter into a binding agreement.

Agency Relationship

represents a legal arrangement where one party, the agent, acts on behalf of another party, the principal, in dealing with third parties.