Colson Products makes NOTAM, a new health food. For a 50- pound batch, the standard costs for materials and labor are as follows:
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Quantity
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Unit Price
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Total
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Wheat
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25 pounds
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$0.20 per pound
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$5.00
|
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Barley
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25 pounds
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$0.10 per pound
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2.50
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Corn
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10 pounds
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$0.05 per pound
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0.50
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Skilled labor
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0.8 hours
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$12.00 per hour
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9.60
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Unskilled labor
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0.2 hours
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$ 8.00 per hour
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1.60
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During June, the following materials and labor were used in producing 600 batches of NOTAM:
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Wheat
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18,000 pounds at $0.22 per pound
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Barley
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14,000 pounds at $0.11 per pound
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|
Corn
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10,000 pounds at $0.04 per pound
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Skilled labor
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400 hours at $12.25 per hour
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|
Unskilled labor
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260 hours at $8.00 per hour
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a. Calculate the material quantity, mix, and yield variances.
b. Calculate the labor efficiency, mix, and yield variances.