Refer to the Webers Data Set above. 1. Compute the direct materials efficiency variance for onion, mustard,
Question:
1. Compute the direct materials efficiency variance for onion, mustard, and ketchup.
2. As a manager, what would you learn from the variances and supporting data?
Transcribed Image Text:
The standard direct materials for a regular Weber's hamburger are as follows: 1 bun 1 hamburger patty Assume that the company has set the following standard materials prices: Buns S0.10 each Onio$0.08 per teaspoon Hamburger patties$0.20 each Mustard$0.04 per teaspoon 1 pickle slice 1/8 teaspoon of onion 1/4 teaspoon of mustard 25 g of ketchup kle slices$0.03 per slice In addition to the direct materials standards, the company sets standards for direct labour. The standard labour wage rate is $12 per hour. Since the griddles are so large, the restaurants cook the hamburgers in batches of 20. The standard time allotted to cook, apply condiments, and wrap each batch of 20 hamburgers is four minutes. Ketchup... S0.20 per 100 g Assume that a Halifax, NS, Weber's sold 5,000 hamburgers yesterday and actually used the following materials 5,150 buns 4,800 pickle slices 1,400 teaspoons of mustard 5,100 hamburger patties 800 teaspoons of onion 137.5 kg of ketchup
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Managerial Accounting
ISBN: 978-0176223311
1st Canadian Edition
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp
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