Bonner Company's direct labor cost for March was as follows:
$\begin{array}{lrr}
\text { Actual direct labor hours} &30,000\
\text { Standard direct labor hours } &31,000\
\text { Rate variance} &\$4,500 \mathrm{U}\
\text {Total payroll } &\$189,000\
\text { Labor mix variance } &\$4,225 \mathrm{U}\
\end{array}$

-
What was Bonner's direct labor yield variance?
A) $13,450.
B) $9,675.
C) $9,225.
D) $5,000.

Question

Bonner Company's direct labor cost for March was as follows:
$\begin{array}{lrr}
  \text {  Actual direct labor hours} &30,000\
 \text { Standard direct labor hours } &31,000\
 \text {  Rate variance} &\$4,500 \mathrm{U}\
 \text {Total payroll  } &\$189,000\
 \text { Labor mix variance } &\$4,225 \mathrm{U}\
\end{array}$

-
What was Bonner's direct labor yield variance?
A) $13,450.
B) $9,675.
C) $9,225.
D) $5,000.

Quizplus · Accepted Answer

The direct labor yield variance is the difference between the actual direct labor hours and the standard direct labor hours, multiplied by the standard direct labor rate. In this case, the actual direct labor hours were 30,000 and the standard direct labor hours were 31,000. The standard direct labor rate is not given, but we can calculate it by dividing the total payroll by the standard direct labor hours: $189,000 / 31,000 = $6.10. Therefore, the direct labor yield variance is (30,000 - 31,000) * $6.10 = $6,100.

Bonner Company's Direct Labor Cost for March Was as Follows