Reference no: EM132769655
Eugene Company Manufactures a hand soap. The company employs both skilled and unskilled workers. To produce one 55-gallon drum of soap requires Materials A and B as well as skilled labor and unskilled labor.
The standard and actual material and labor information is presented below:
Standard:
Material A: 30.25 @ P1.25 per gallon
Material B: 24.75 @ P2.00 per gallon
Skilled Labor: 4hrs @ P12 per hour
Unskilled Labor: 2hours @ P7 per hour
Actual:
Material A: 10,716 gallons purchased and used @P1.50 per gallon
Material B: 17,484 gallons purchased and used @ P1.90 per gallon
Skilled Labor Hours: 1,950 @ P11.90 per hour
Unskilled Labor Hours: 1,300 @ P7.15 per hour
During the current month Eugene Company manufactured 500 pcs of 55-gallon drums.
Problem 1: Compute for the following:
a. Total Material Price Variance
b. Total Material Mix Variance
c. Total Material Yield Variance
d. Total Labor Rate Variance
e. Total Labor Mix Variance
f. Total Labor Yield Variance