You are the manager of a midsize restaurant. In making budget-to-actual comparisons this month, you ﬁnd that there is a large favorable material price variance and a large unfavorable material quantity variance. Are you pleased with the individual who purchases your food items and disappointed with the chef? Explain.
Answer to relevant QuestionsList at least three reasons why a company might experience (a) A labor rate variance (b) A labor efﬁciency variance. Will each of your explanations result in favorable or unfavorable variances? Explain. Ensinada Mfg. Co., from Exercise 18, produces candles that contain four raw materials: wax, dye, scented oil, and a wick. Each candle uses eight ounces of wax and one ounce of dye, which Ensinada purchases for $0.15 and ...Standard and actual material information is given in the following table for four companies. Required: For each company, calculate the missing ﬁgures. Assume that the quantity of material purchased is the same as the ...Kalama-Rama’s monthly sales are typically 20 percent for cash and 80 percent on credit. All cash sales are given a 2 percent discount. The company’s credit A/R collections are in the following pattern: 80 percent in the ...Consolidate-It, Inc. produces and sells plastic drawers and containers. Standard quantities for one unit of each product follow. Overhead is applied to production at the rate of $3 per direct labor hour. Consolidate-It ...
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