Question
Matt's Eat & Run has two categories of direct labor: unskilled, which costs $22 per hour, and skilled which cost $38 per hour. Management has
Matt's Eat & Run has two categories of direct labor: unskilled, which costs $22 per hour, and skilled which cost $38 per hour. Management has established standards per "equilivant friendly meal," which has been definied as a typical meal conisting of a hamburger, a drink, and french fries. Standards have been set as follows:
Skilled labor 3 minutes per equivalent meal
Unskilled labor 7 minutes per equivalent meal
For the year, Matt sold 198,000 equivalent friendly meals and incurred the following labor cost:
Skilled labor 9,900 hours $383,000
Unskilled labor 10,000 hours $261,000
Compute labor mix and yield variances. (please explain how to do this)
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