Manhattan Manufacturing Company

Manhattan Manufacturing Company engages 3 categories of workmen: Skilled, Semi-Skilled,

and Unskilled. The standard labor cost for 10000 units in the month of January based on 8 hours
a day and 25 working days are given below:

Category No. of workers Total Cost per worker per

month
Skilled 40 3200
Semi-Skilled 30 2400
Unskilled 55 1600

12000 Units were produced during January by working 25 days at 9 hours per day and the labor
costs incurred were as follows:

Category No. of Workers Total Labor Costs

Skilled 46 194400
Semi-Skilled 45 133650
Unskilled 80 129600

Compute the following (Please clearly specify if the variance is favorable or unfavorable):

Production Volume Variance_________________________

DL Price/Rate Variance______________________________

DL Usage Variance_________________________________

DL Mix Variance___________________________________

DL Yield Variance__________________________________