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