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Senocot Corporation Uses Two Different Types of Labour to Manufacture

Question 81

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Senocot Corporation uses two different types of labour to manufacture its product.The types of labour,Assembly and Finishing,have the following standards:
 Labour Type Standard Mix  Standard Unit Price Standard Cost Assembly 800 hours $12.00 per unit $9,600 Finishing 200 hours 8.00 per unit $1,600 Yield 5000 units \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:
 Labour Type  Actual Mix  Assembly 7,000 hours  Finishing 3,000 hours  Yield 45,000 units \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.

Correct Answer:

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Labour mix variance: SM(assembly)= (800/...

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