Montecino Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: $\begin{array} { l r r r } \text { Labor Type } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \ \text { Cutting } & 500 \text { hours } & \$ 7.50 \text { per unit } & \$ 3,750 \ \text { Setup } & 125 \text { hours } & 5.00 \text { per unit } & \$ 625\\
\text { Yield }&3,125\text { units }
\end{array}$

During July, the following actual production information was provided:

$\begin{array}{ll}
\text { Labor Type }&\text { Actual MIix }\
\text { Cutting } & 4,375 \text { hours } \
\text { Setup } & 1,875 \text { hours }
\end{array}$ Yield 28,125 units What is the Labor mix variance?

Question

Montecino Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: $\begin{array} { l r r r } \text { Labor Type } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \ \text { Cutting } & 500 \text { hours } & \$ 7.50 \text { per unit } & \$ 3,750 \ \text { Setup } & 125 \text { hours } & 5.00 \text { per unit } & \$ 625\\
\text { Yield }&3,125\text { units }
 \end{array}$

During July, the following actual production information was provided:

$\begin{array}{ll}
\text { Labor Type }&\text { Actual MIix }\
\text { Cutting } & 4,375 \text { hours } \
\text { Setup } & 1,875 \text { hours }
\end{array}$ Yield 28,125 units What is the Labor mix variance?

Quizplus · Accepted Answer

The Answer of Montecino Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: $\begin{array} { l r r r } \text { Labor Type } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \ \text { Cutting } & 500 \text { hours } & \$ 7.50 \text { per unit } & \$ 3,750 \ \text { Setup } & 125 \text { hours } & 5.00 \text { per unit } & \$ 625\\
\text { Yield }&3,125\text { units }
 \end{array}$

During July, the following actual production information was provided:

$\begin{array}{ll}
\text { Labor Type }&\text { Actual MIix }\
\text { Cutting } & 4,375 \text { hours } \
\text { Setup } & 1,875 \text { hours }
\end{array}$ Yield 28,125 units What is the Labor mix variance?

Montecino Corporation Uses Two Different Types of Labor to Manufacture