Labor variances (Appendix 11.1). Assume Burgers To Go has two categories of direct labor: unskilled, which costs S6 per hour, and skilled, which costs $10 per hour.

Management established standards per "equivalent meal." which it has defined as a typical meal consisting of a sandwich, a drink, and a side order. Managers set standards as f ollows: skilled labor. 6 minutes per equivalent meal: unskilled labor. 15 minutes per equivalent meal. During July. Burgers To Go sold 10.000 equivalent meals and incurred the following labor costs:

Compute labor price and efficiency variances.

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Skilled Labor: 900 Hours. Unskilled Labor: 2,300 Hours $ 9.600 14.000