Business, 21.04.2020 22:06 ggdvj9gggsc
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 eight hour shifts and are assigned to a truck each day based on labor needs to support the daily menu. One of the trucks, Jose O’Brien’s Mobile Fiesta, specializes in Irish-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 Irish 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. Standard direct labor per meal 0.1 hr. Standard rate for direct labor $15.50 per hr. a. Determine the direct labor rate variance, direct labor time variance, and the 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. Rate variance $ Time variance $ Total direct labor cost variance $ b. Discuss what might have caused these variances. a. The time taken to prepare the meals was much higher than the budgeted time. b. The number of meals that can be actually made by the staff is less than the number of meals that could be generated by the employees assigned. c. The actual cost of the labor is higher than the standard cost.
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Hit-n-Run Food Trucks, Inc. owns and operates food trucks (mobile kitchens) throughout the west coas...
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