Question
A claims processing unit uses a mix of clerks and
analysts. Budget: 60% clerks (₹200/hr), 40% analysts (₹500/hr) for 10,000 hours. Actual: 55% clerks, 45% analysts; total 9,600 hours. Compute qualitative interpretation of mix variance sign.Solution
Higher share of analysts (costlier grade) makes mix variance adverse, ceteris paribus.
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