In: Accounting
1.2 REQUIRED: Use the information provided below to calculate the following:
1.2.1 Idle time variance (3)
1.2.2 Labour mix variance (7)
1.2.3 Labour yield variance (3)
Indicate whether each variance is favourable or unfavourable.
INFORMATION:
Standard labour costs for Electro Manufacturers to manufacture 2 000 units:
400 hours at R70 per hour
200 hours at R35 per hour
Actual labour costs incurred to produce 1 900 units:
290 hours at R R65 per hour
170 hours at R32 per hour
Idle time represents 10% of the recorded labour hours