Compute the efficiency variances for direct labor

Reference no: EM13283298

You decide to look at your sales for a typical day. You find that the parlor used 390 pounds of ice cream and 72 hours of direct labor to produce and sell 2,000 shakes. The standard quantity allowed for a shake is 0.2 pound of ice cream and 0.03 hour of direct labor. The standard costs are $1.50 per pound for ice cream and $8 per hour for labor.

1. Compute the efficiency variances for direct labor and direct materials.

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

Reference no: EM13283298

Questions Cloud

Hiring individuals for a human service organization : What is your definition of diversity and how must it be considered when hiring individuals for a human service organization?

Examine the data for skewness-other signs of non-normality : Examine the data for skewness and other signs of non-Normality. Show your plots and numerical summaries. Do you think it is reasonable to construct a confidence interval based on the Normal distribution?

Compare and contrast the sampling process : The sampling error usually decreases with increasing sample size. What are two quantitative nursing research studies related to your clinical area of interest? Compare and contrast the sampling process of each study.

Eexercised the option and the immediately sold the stock : Suppose you own a call options that permits you to purchase 100 shares of the stock of Silicon Graphics for $15 per share any time in the next three months. Silicon Graphics has a current market price of $12 per share. Should you excise the op..

Compute the efficiency variances for direct labor : Compute the efficiency variances for direct labor and direct materials. 2. Provide likely explanations for the variances. Do you have reason to be concerned about your performance evaluation? Explain.

Moving in the right direction for project success : Projects today often run in a virtual world where the team members or resources do not even interact with each other throughout a project. How does a Project Manager keep a team motivated and moving in the right direction for project success?

Study the effect of a drug on the blood pressure of rates : A scientist wanted to study the effect of a drug on the blood pressure of rats.she sets up an experiment in which the experimental group consisted of rats that were injected with a salt solution containing the drug. what should the control group have..

New intrusion detection system : While sitting in the break room at work one day, Stan is talking with his friend Joe, who is excitedly describing an idea for a new intrusion detection system (IDS). Joe describes an elegant new algorithm that will flawlessly detect intrusion attacks..

Models of bond pricing : Models of Bond Pricing

User Account

All Pages