Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Secretarial Audits Under Corporate Laws And Annual Return Certification

Authors: CS Shilpa Dixit And CS Amogh Diwan CS Milind Kasodekar

1st Edition

9389449324, 978-9389449327

More Books

Students also viewed these Accounting questions

Question

What function does a modem perform?

Answered: 1 week ago

Question

Develop clear policy statements.

Answered: 1 week ago

Question

Draft a business plan.

Answered: 1 week ago

Question

Describe the guidelines for appropriate use of the direct plan.

Answered: 1 week ago