Reference no: EM132784194

Question - Xtra Klean manufactures a cleaning solvent. The company employs both skilled and unskilled workers. Skilled workers class C are paid P12 per hour, while unskilled workers class D are paid P7 per hour. To produce one 55-gallon drum of solvent requires 4 hours of skilled labor and 2 hours of unskilled labor. The solvent requires 2 different materials: A and B. The standard and actual material information is given below:

Standard:

Material A: 30.25 gallons @ P1.25 per gallon

Material B: 24.75 gallons @ P2.00 per gallon

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 Xtra Klean manufactured 500 55-gallon drums. (Round all answers to the nearest peso.)

Required -

a. What is the total material mix variance?

b. What is the total material yield variance?

c. What is the labor mix variance?

d. What is the labor yield variance?