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Direct Labor Variances for a Service Company Hit-n-Run Food Trucks, Inc. owns and operates food trucks (mobile kitchens) throughout the west coast. The company's employees

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Direct Labor Variances for a Service Company Hit-n-Run Food Trucks, Inc. owns and operates food trucks (mobile kitchens) throughout the west coast. The company's employees have varying wage levels 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 Flesta, specializes in Trish-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 lrish Breakfast Enchilada. The following data are available for that day: Quantity of direct labor used 24 hrs (3 employees, working 8 hour shifts) Actual rate for direct labor $15.00 per hr 0.1 hr $15.50 per hr Standard direct labor per meal Standard rate for direct labor a. Determine the direct labor rate varlance, direct labor 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 Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance Favorable Unfavorable Unfavorable v b. Discuss what might have caused these variances ber of meals that could be ger Unfavorable time variance will occur any time the number of meals actually made falls below the maximum num

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