Question Cost accountants at Condriac Hospital reported the following informatio

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Cost accountants at Condriac Hospital reported the following information for March 2011 regarding its nursing staff consisting of registered nurses (RNs) and aides:

1.What is Condriax's labor yield variance for March 2011. In the box below, show and label your computations and clearly label your final answer. Be sure to indicate whether the variance is favorable or unfavorable.

2. What is Condriac's labor mix variance for March 2011. In the box below, show and label your computations and clearly label your final answer. Be sure to indicate whether the variance is favorable or unfavorable.

Standard Rate Actual Rate Standard Hours Actual Hours Per Hour Per Hour RNS 8,100 7,130 $25.00 $25.80 Aides 3,900 4,370 $12.00 $12.50

Explanation / Answer

(1) Computation of Condriax's labor yield variance for March 2011.We have,

Labour Yield Variance = ( Standard Hours rate x Actural Hours) - ( Actural Hours Rate x Actual Hours)

(2) Computation of labour mix variance for the month of March 2011.We have,

Labour Mix Variance = (Standard hour Rate x Actual hours) - ( Standard Hour Rate x Standard hours)

Particulars Calculation Variance RNS (25.00 X 7,130) - ( 25.80 X 7,130) = 178,250 - 183,954 $ 5,704 Unfavourable Aides (12.00 x 4,370) - ( 12.50 x 4,370) =52,440 - 54,625 $ 2,185 Unfavourable

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