Reference no: EM132536419

The Hong Kong Food Inc. makes hot dogs and customers can buy the hot dogs at various supermarkets. The two main ingredients (direct material) to make hot dogs are flour and sausages. Hong Kong Food Inc hires two employees to make the hot dogs. The first worker, Tom, is an experienced hot dog maker and is paid $18 per hour. The second worker, Jerry, is new to this business and thus is paid $7 per hours.

The information for May 2020 is as the following:

Direct labor use (budgeted)                            0.02 hours per person per hot dog
Direct material use (budgeted)                        0.1 pounds of ?our per hot dog@ $3.00/pound
                                                                  0.01 pounds of sausages per hot dog @ $30/pound

Planned (budgeted output) output                    10,000 hot dogs
Actual output                                          10,400 hot dogs

• At the end of May, Tom was paid $3,690 for 196 hours of work and Jerry was paid $1,680 for 204 hours of work. For the direct materials, 990 pounds of flour and 120 pounds of sausages were purchased and used. The actual purchasing price for the flour and sausages were $3,960 and $4,200, respectively.

Required:

Question 1: What is the budgeted cost of direct labor for 10,400 hot dogs?

Question 2: Calculate the total direct material price and usage variances.

Question 3: What is the actual direct labor input mix percentage?

Question 4: Calculate the direct labor mix and yield variance for Tom and Jerry.