GH Manufactures a Product Using Skilled Labour and High Quality

GH manufactures a product using skilled labour and high quality materials. The company operates a standard costing system and a just-in-time (JIT) purchasing and production system. The standard selling price and variable costs for one unit of the product are as follows: 11ec37eb_8baa_2b57_97b9_e7e297f9ad54__00 11ec37eb_8baa_2b58_97b9_27a8ce40dc17__00 Calculate the following variances for October, taking account of the more detailed information regarding the labour mix: (i) The total labour efficiency variance (ii) The total labour mix variance (iii) The total labour yield variance Select the correct statements.

A) Labour yield variance: $ 144 000 A
B) Labour mix variance: $ 66 000 F
C) Labour efficiency variance: $ 78 000 A
D) Labour efficiency variance: $ 78 000 F
E) Labour efficiency variance: $ 88 000 F
F) Labour mix variance: $ 75 000 F
G) Labour efficiency variance: $ 98 000 A
H) Labour mix variance: $ 63 000 A

Correct Answer:

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