Montecino Corporation uses two different types of labor to
manufacture its product. The types of labor, Cutting and Setup,
have the following standards:
Labor Type
Standard Mix
Standard Unit Price
Standard Cost
Cutting
500 hours
$7.50 per unit
$3,750
Setup
125 hours
5.00 per unit
$ 625
Yield
3,125 units
During July, the following actual production information was
provided:
Labor Type
Actual Mix
Cutting
4,375 hours
Setup
1,875 hours
Yield
28,125 units
What is the Labor mix variance?
a.$3,750(U)
b.$1,563(F)...