(Appendix) Haddas Ltd. makes Healthy Life, a nutritional aid. For a 50 pound batch, standard material and labor costs are as follows:
|
Quantity |
Unit Price |
Total |
|
|
Wheat |
25.0 pounds |
$0.20 per pound |
$5.00 |
|
Barley |
25.0 pounds |
0.10 per pound |
2.50 |
|
Corn |
10.0 pounds |
0.05 per pound |
0.50 |
|
Skilled labor |
0.8 hour |
12.00 per hour |
9.60 |
|
Unskilled labor |
0.2 hour |
8.00 per hour |
1.60 |
During June, the following materials and labor were used in producing 600 batches of Healthy Life:
|
Wheat |
18,000 pounds at $0.22 per pound |
|
Barley |
14,000 pounds at $0.11 per pound |
|
Corn |
10,000 pounds at $0.07 per pound |
|
Skilled labor |
400 hours at $12.25 per hour |
|
Unskilled labor |
260 hours at $9.00 per hour |
a. Calculate the material quantity, mix, and yield variances.
b. Calculate the labor efficiency, mix, and yield variances.