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lease help me understand how to assess labor and materials. The example below is one I struggle to understand. A typical McDonald's restaurant used 390 lbs. of dairy products and coffee beans and 72 hours of direct labor to produce 2 000 McCafe drinks.  The standard quantity allowed for a drink is .2 lbs. of materials and .03 hours of direct labor.  The standard prices are $1.50 per pound of materials and $8 per hour for labor.  To help McDonald's assess its situation, please determine the direct labor and direct materials efficiency variances.

lease help me understand how to assess labor and materials. The example below is one I struggle to understand. A typical McDonald's restaurant used 390 lbs. of dairy products and coffee beans and 72 hours of direct labor to produce 2 000 McCafe drinks.  The standard quantity allowed for a drink is .2 lbs. of materials and .03 hours of direct labor.  The standard prices are $1.50 per pound of materials and $8 per hour for labor.  To help McDonald's assess its situation, please determine the direct labor and direct materials efficiency variances.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me understand how to assess labor and materials. The example below is one I struggle to understand.

A typical McDonald's restaurant used 390 lbs. of dairy products and coffee beans and 72 hours of direct labor to produce 2 000 McCafe drinks.  The standard quantity allowed for a drink is .2 lbs. of materials and .03 hours of direct labor.  The standard prices are $1.50 per pound of materials and $8 per hour for labor.  To help McDonald's assess its situation, please determine the direct labor and direct materials efficiency variances.

Word File Edit View Insert Format Tools Table Window Help ●●● AutoSave OFF ÂSUS = Home Insert Draw Design Layout References X LG A A Aa A₂ A✓ ✓ A V Paste Clipboard Page 1 of 1 Times New... 12 BIU ✓ab x₂ x² A 99 words Font Mailings Review E-E-F ≡ ≡ ≡ ≡ = IX English (United States) V View == V Paragraph Document1 Tell me ↓ ¶ AaBbCcDdEe Normal C) Styles 26% ¹ AaBbCcDdEe Aa BbCcDc AaBbCcDdE Aa Bb No Spacing Heading 1 Heading 2 Title Please help me understand how to assess labor and materials. The example below is one I struggle to understand. Explanations of variances would be useful. Focus A typical McDonald's restaurant used 390 lbs. of dairy products and coffee beans and 72 hours of direct labor to produce 2 000 McCafe drinks. The standard quantity allowed for a drink is .2 lbs. of materials and .03 hours of direct labor. The standard prices are $1.50 per pound of materials and $8 per hour for labor. To help McDonald's assess its situation, please determine the direct labor and direct materials efficiency variances. Mon 10:38 AM RE Share Styles Pane Q Comments + E Dictate Voice V 199%
Transcribed Image Text:Word File Edit View Insert Format Tools Table Window Help ●●● AutoSave OFF ÂSUS = Home Insert Draw Design Layout References X LG A A Aa A₂ A✓ ✓ A V Paste Clipboard Page 1 of 1 Times New... 12 BIU ✓ab x₂ x² A 99 words Font Mailings Review E-E-F ≡ ≡ ≡ ≡ = IX English (United States) V View == V Paragraph Document1 Tell me ↓ ¶ AaBbCcDdEe Normal C) Styles 26% ¹ AaBbCcDdEe Aa BbCcDc AaBbCcDdE Aa Bb No Spacing Heading 1 Heading 2 Title Please help me understand how to assess labor and materials. The example below is one I struggle to understand. Explanations of variances would be useful. Focus A typical McDonald's restaurant used 390 lbs. of dairy products and coffee beans and 72 hours of direct labor to produce 2 000 McCafe drinks. The standard quantity allowed for a drink is .2 lbs. of materials and .03 hours of direct labor. The standard prices are $1.50 per pound of materials and $8 per hour for labor. To help McDonald's assess its situation, please determine the direct labor and direct materials efficiency variances. Mon 10:38 AM RE Share Styles Pane Q Comments + E Dictate Voice V 199%
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