The Bergie Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Bergie's purchased and used 95,000 pounds of potatoes at a price of $0.75per pound. During the week, 2,200 direct labor hours were incurred in the plant at a rate of $12.40 per hour. The standard price per pound of potatoes is $0.85, and the standard direct labor rate is$12.15 per hour. Standards indicate that for the number of bags of frozen fries produced, the factory should have used 92,000 pounds of potatoes and 2,000 hours of direct labor.Read the requirements.Requirement 1. Determine the direct material price and quantity variances. Be sure to label each variance as favorable or unfavorable. (Enter the variances as positive numbers. Enter currencyamounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials.)Begin by determining the formula for the price variance, then compute the price variance for direct materials.× (XRequirements1. Determine the direct material price and quantity variances. Be sure to labeleach variance as favorable or unfavorable.2. Think of a plausible explanation for the variances found in Requirement 1.3. Determine the direct labor rate and efficiency variances. Be sure to label eachvariance as favorable or unfavorable.4. Could the explanation for the labor variances be tied to the material variances?Explain.PrintDone)==XDM price variance

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The Bergie Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Bergie's purchased and used 95,000 pounds of potatoes at a price of $0.75 per pound. During the week, 2,200 direct labor hours were incurred in the plant at a rate of $12.40 per hour. The standard price per pound of potatoes is $0.85, and the standard direct labor rate is $12.15 per hour. Standards indicate that for the number of bags of frozen fries produced, the factory should have used 92,000 pounds of potatoes and 2,000 hours of direct labor. Read the requirements.

The Bergie Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Bergie's purchased and used 95,000 pounds of potatoes at a price of $0.75 per pound. During the week, 2,200 direct labor hours were incurred in the plant at a rate of $12.40 per hour. The standard price per pound of potatoes is $0.85, and the standard direct labor rate is $12.15 per hour. Standards indicate that for the number of bags of frozen fries produced, the factory should have used 92,000 pounds of potatoes and 2,000 hours of direct labor. Read the requirements.

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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SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 4,800 of these meals using 1,400 direct labor-hours. The company paid its direct labor workers a total of $18,200 for this work, or $13.00 per hour. According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $12.50 per hour. Required: What is the standard labor-hours allowed (SH) to prepare 4,800 meals? What is the standard labor cost allowed (SH × SR) to prepare 4,800 meals? What is the labor spending variance? What is the labor rate variance and the labor efficiency variance? Note: For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon with mixed vegetables. During the most recent week, the company prepared 6,300 of these meals using 1,800 direct labor-hours. The company paid its direct labor workers a total of $18,000 for this work, or $10.00 per hour. According to the standard cost card for this meal, it should require 0.30 direct labor-hour at a cost of $9.20 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 6,300 meals? 2. What is the standard labor cost allowed (SH × SR) to prepare 6,300 meals? 3. What is the labor spending variance? 4. What are the labor rate variance and the labor efficiency variance? Note: For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. 1. Standard labor-hours allowed 2. Standard labor…
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SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 3,500 of these meals using 1,710 direct labor-hours. The company paid its direct labor workers a total of $23,940 for this work, or $14.00 per hour. According to the standard cost card for this meal, it should require 0.50 direct labor-hours at a cost of $13.50 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 3,500 meals? 2. What is the standard labor cost allowed (SH x SR) to prepare 3,500 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Answer is not complete. 1. Standard…
a company prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon with mixed vegetables. During the most recent week, the company prepared 3,400 of these meals using 1,300 direct labor-hours. The company paid its direct labor workers a total of $16,900 for this work, or $13.00 per hour. According to the standard cost card for this meal, it should require 0.40 direct labor-hour at a cost of $12.00 per hour. What is the labor spending variance? What are the labor rate variance and the labor efficiency variance?
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