Burlington Burrito has two categories of direct labor, unskilled, which costs $6.50 per hour, and skilled, which
Question:
Burlington Burrito has two categories of direct labor, unskilled, which costs $6.50 per hour, and skilled, which costs $10.30 per hour. Management has established standards per “equivalent meal,” which has been defined as a typical meal consisting of a burrito, a drink, and a side order. Standards have been set as follows:
Unskilledlawonmimesrcnenntraeasisne re ne 10 minutes per equivalent meal SKIMEC: ADO eertaet ager ree eee eee cere: 4 minutes per equivalent meal During May, Burlington Burrito sold 30,000 equivalent meals and incurred the following labor costs:
WiSKIIECHAbOri yee arere eee AGOO NOUNS woe ee eee $33,000 SIMMIECHEISION sscanpuaescsroshenosecaeceneaso8 5 I GSOOMOUNS tare wane. aitvuetreep eegea re Required
a. Compute the direct-labor rate and efficiency variances.
b. Compute the direct-labor mix and yield variances.
Step by Step Answer:
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto