Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Big Sky Enterprises produces frozen French fries. This past month, Big Sky made 63,000 bags of fries. Big Sky's standard hours to make each bag

Big Sky Enterprises produces frozen French fries. This past month, Big Sky made 63,000 bags of fries. Big Sky's standard hours to make each bag of fries is 0.1 hours and its standard labor rate is $13.50 per hour. It took Big Sky 6,500 hours to make these bags of fries at a labor cost of $89,375. What was their Labor Spending Variance, and is it favorable or unfavorable? $2,700 Unfavorable $3,725 Favorable $1,625 Unfavorable $4,625 Unfavorable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the Labor Spending Variance we need to compare the actual labor cost to the standard l... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Financial and Managerial Accounting

Authors: Rich Jones, Mowen, Hansen, Heitger

1st Edition

9780538751292, 324787359, 538751290, 978-0324787351

More Books

Students also viewed these Accounting questions

Question

26. Expand (x1+ 2x2 + 3x3).

Answered: 1 week ago

Question

24. Expand (3x + y).

Answered: 1 week ago