# Haddas Ltd. makes Healthy Life, a nutritional

Problem 7-66 (Algorithmic)AppendixHaddas Ltd. makes Healthy Life, a nutritional aid. For a 50-pound batch, standard material and labor costs are as follows:QuantityUnit PriceTotalWheat23.0 pounds\$ 0.18 per pound\$4.14Barley27.0 pounds0.10 per pound2.70Corn10 pounds0.04 per pound0.40Skilled labor0.8 hour14.00 per hour11.20Unskilled labor0.2 hour8.00 per hour1.60During June, the following materials and labor were used in producing 600 batches of Healthy Life:Wheat17,400 pounds @ \$0.21 per poundBarley15,500 pounds @ \$0.11 per poundCorn10,000 pounds @ \$0.06 per poundSkilled labor410 hours @ \$14.20 per hourUnskilled labor250 hours @ \$9.00 per houra. Calculate the material quantity, mix, and yield variances. Round your answers to the nearest dollarMaterial Mix Variance \$______________ favorableMaterial Yield Variance \$______________ unfavorableMaterial quantity variance \$______________ unfavorableb. Calculate the labor efficiency, mix, and yield variancesLabor Mix Variance \$______________ favorableLabor Yield Variance \$______________ unfavorableLabor Efficiency Variance \$______________ unfavorablea.) Material Mix Variance = (AM x AQ x SP) â (SM x AQ x SP)Material Yield Variance = (SM x AQ x SP) â (SM x SQ x SP)b.) Labor Rate Variance = (AM x AH x AR) â (AM x AH x SR)Labor Mix Variance = (AM x AH x SR) â (SM x AQH x SR)Labor Yield Variance = (SM x AH x SR) â (SM x SH x SR)