Essay
Trump Corporation operates a factory.One of its departments has three kinds of employees on its direct labor payroll,classified as pay grades A,B,and C.The employees work in 10-person crews in the following proportions:
| Pay Grade | No. of Workers in Standard Crew | Standard Hourly Wage Rate | Standard Cost per Crew Hour |
| A | 6 | $4 | $24 |
| B | 3 | 6 | 18 |
| C | 1 | 8 | 8 |
| Total | 10 | $50 |
The work crews cannot work short-handed.To keep a unit operating when one of the regular crew members is absent,the head of the department first tries to reassign one of the department's other workers from indirect labor operations.
If no one in the department is able to step in,plant management will pull maintenance department workers off their regular work,if possible,and assign them temporarily to the department.These maintenance workers are all classified as Grade D employees,with a standard wage rate of $10 an hour.
The following data relate to the operations of the department during the month of May:
1. Actual work time, 1,000 crew hours.
2. Actual direct labor hours:
Grade A, 5,400 hours.
Grade B, 3,200 hours.
Grade C, 1,300 hours.
Grade D, 100 hours.
3. Standard crew hours for actual output, 980.
Required: Compute labor rate,mix,and yield variances.
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