ch 8 q 5

Direct Labor Variances for a Service Company Hit-n-Run Food Trucks, Inc. owns and operates food trucks (mobile kachens) throughout the west coast. The company's employees have varying wage leveis depending on their experience and length of time with the company. Employees work 8-hour shifts and are assigned to a truck each day based on labor needs to support the daily menu. One of its trucks, Jose O'Brien's. Mobile Fiesta, specialzes in Irish-Mexican fusion cuisine. The truck offers a single menu item that changes daily, On November 11. the truck prepared 200 of its most popular item, the frish Breakfast Enchilada, The following dats are available for that day: a. Determine the direct labor rate variance, direct lobor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. b. Discuss what might have caused these variances: Unfevorable time variance will eccur any time the number of meals actualif made falls helow the maximum number of meals that cosid be generated by e