Regis Corporation uses two materials in the production of its product. The materials, $ \mathrm{X} $ and $ \mathrm{Y} $, have the following standards:

$\begin{array}{llll}
\text { Material }& \text { Standard Mix } &\text { Standard Unit Price } & \text { Standard Cost }\
\mathrm{X} & 3,500 \text { units } & \$ 1.00 \text { per unit } & \$ 3,500 \
\mathrm{Y} & 1.500 \text { units } & 3.00 \text { per unit } & \$ 4.500\
\
\text { Yield }& 4,000 \text { units }
\end{array}$

$\text { During April, the following actual production information was provided: }$
$\begin{array}{cl}
\text { Material } & \text { Actual Mix } \
\mathrm{X} & 30,000 \text { units } \
\mathrm{Y} & 20,000 \text { units } \\
\text { Yield } & 36,000 \text { units }
\end{array}$
-Refer to the figure.What is the labour mix variance?
A)$2,500 (F)
B)$2,500 (U)
C)$5,000 (F)
D)$5,000 (U)

Question

Regis Corporation uses two materials in the production of its product. The materials, $ \mathrm{X} $ and $ \mathrm{Y} $, have the following standards:

$\begin{array}{llll}
\text { Material }& \text { Standard Mix } &\text { Standard Unit Price } & \text { Standard Cost }\
\mathrm{X} & 3,500 \text { units } & \$ 1.00 \text { per unit } & \$ 3,500 \
\mathrm{Y} & 1.500 \text { units } & 3.00 \text { per unit } & \$ 4.500\
\
\text { Yield }& 4,000 \text { units }
\end{array}$

$\text { During April, the following actual production information was provided: }$
$\begin{array}{cl}
\text { Material } & \text { Actual Mix } \
 \mathrm{X} & 30,000 \text { units } \
\mathrm{Y} & 20,000 \text { units } \\
\text { Yield } & 36,000 \text { units }
\end{array}$
-Refer to the figure.What is the labour mix variance?
A)$2,500 (F)
B)$2,500 (U)
C)$5,000 (F)
D)$5,000 (U)

Quizplus · Accepted Answer

The labour mix variance is the difference between the actual cost of labour and the standard cost of labour. The actual cost of labour is the actual number of hours worked multiplied by the actual hourly rate. The standard cost of labour is the standard number of hours allowed for the actual output multiplied by the standard hourly rate.In this case, the actual number of hours worked is not given, so we cannot calculate the actual cost of labour. However, we can calculate the standard cost of labour. The standard number of hours allowed for the actual output is 36,000 units / 4,000 units per standard yield = 9 standard yields. The standard hourly rate is not given, so we cannot calculate the standard cost of labour.Therefore, we cannot calculate the labour mix variance.

Regis Corporation Uses Two Materials in the Production of Its X \mathrm{X} X

Regis Corporation Uses Two Materials in the Production of Its $\mathrm{X}$