Matt’s Eat ‘N Run has two categories of direct labor, unskilled, which costs \($7.50\) per hour, and skilled, which costs \($15\) per hour. Management has established standards per “equivalent friendly meal,’ which has been defined as a typical meal consisting of a hamburger, a drink, and French fries. Standards have been set as follows:

Required

a. Compute labor price and efficiency variances.

b. Compute labor mix and yield variances.

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Skilled labor Unskilled labor 1 minute per equivalent meal 3 minutes per equivalent meal During May, Matt's sold 180,000 equivalent friendly meals and incurred the following labor costs: Skilled labor. 3,000 hours $46,000 Unskilled labor. 7,500 hours 90,000