Question 2 Fast Food Lid operates a chain of restaurants and, following the leaders in the industry such as MacDonalds has adopted a restricted, consistent quality, "value for money" menu, served at high speed. Tight cost control is essential in a competitive, low price environment and the company exercises close control over food and labour costs by means of a standard costing system. The most recent standard cost for a cheeseburger: Materials E Bread (2 slices at $0.02 per slice) 0.04 Burger (12 gram at $0.03 per gram) 0.36 Cheese (4 gram at $0.02 per gram) 0.08 Onions (2 gram at $0.015 per gram) 0.03 Variable overhead Power 0.04 Labour Cooking and serving 0.14 0.69 The variable overhead cost was derived on the basis that a burger takes standard of 10 minutes to cook but 10 burgers would be cooked simultaneously and power for one grill costs $2.40 per hour. The time required for unpacking, cooking and serving has been subjected to method and work study and a standard of 2 minutes per burger has been set at a standard rate of $4.20 per hour. Most of the outlets are returning results in line with standard and this indicates that the standard reflects normal costs and activity. Central Buying Department is pleased that food costs are, if anything at little less than expected. However, one small outlet is a cause for concern and investigation is required. As a starting point you have been asked to analyse the following data for last week's operations and identify possible causes of the problems. 10