Reference no: EM132982785

Question - Bea Manufacturing Company produces cleaning solvent. The company employs both skilled and unskilled workers. To produce one 55-gallon drum of solvent 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 gallons @ P12.50 per gallon

Material B: 24.75 gallons @ P20.00 per gallon

Skilled Labor: 4 hours @ P120.00 per hour

Unskilled Labor: 2 hours @ P 70.00 per hour

Actual-

Material A: 10,716 gallons purchased and used @ P15.00 per gallon

Material B: 17,484 gallons purchased and used @ P19.00 per gallon

Skilled labor hours: 1,950 @ P119.00 per hour

Unskilled labor hours: 1,300 @ P 71.50 per hour

During the current month, Bea Manufacturing Company manufactured 500 55-gallon drums.

Required - How much is the labor yield variance?

A. P11,380 unfavorable

B. P11,380 favorable

C. P25,833 unfavorable

D. P25,833 favorable