Sales on a typical day: 390 pounds of ice cream and 72 hours of direct labor to produce and sell 2000 shakes. The standard quantity allowed for a shake is 0.2 pounds of ice cream and .03 hours of direct labor. The standard cost are 1.50 per pound for ice cream and 8 dollars per hour for labor.

Superiors consider efficiency variances greater than 5% to be unacceptable.

Compute the efficiency variances for direct labor and direct materials.

Provide likely explanations for the variances. Do you have reason to be concerned about your performance evaluation? Explain.

What is the concern and a possible remedy?

Please show all work. Thank you.