Reference no: EM132776339

Question - 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.

Compute for the following:

1. Total Material Price Variance

2. Total Material Mix Variance

3. Total Material Yield Variance

4. Total Labor Rate Variance

5. Total Labor Mix Variance

6. Total Labor Yield Variance