Assume that Gina?s hourly workers went on vacation and she hired temporary workers at $25/hour. What is
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Assume that Gina?s hourly workers went on vacation and she hired temporary workers at $25/hour. What is the labor price/rate variance assuming each worker worked 100 hours in the month
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On average on any given day, 80% of the chicken used in the soup consists of the leftover cooked chicken from the prior day. The remaining 20% consists of fresh chicken cooked for the soup then added. The building which houses the restaurant consists of two floors with the restaurant and storeroom on the first level and an office and office storage area on the second level. It has 2,000 square feet for the upper-level office and 100 for the storage area; the square footage for the lower level is 1,800 Sq. ft. for the restaurant and 700 sq.ft. for the storeroom. There are 3 workers: Gina, who takes a salary of $5,000 per month and two worker paid $20/hour. Gina orders the groceries and takes inventory. The two hourly employees serve the customers, pack the soup, prep the ingredients for the soup, cook the chicken, and clean up. Gina makes the soup and oversees the restaurant & is also the cashier. The hourly workers work 40 hour weeks. Gina sells the 8oz cup of soup for $3.99 and the 12 oz for $5.49. On average Gina sells 5,500 cups of soup a month: 3,000 of the 8 oz and 2,500 of the 12 oz. Gina has the capacity to make 6,000 cups of soup a month-in the same ratio as noted here (3,000:2,500). MATERIALS COST 6 gallons of filtered water $1.00 per five gallon jug 3 pounds of chicken, breasts, thigh ground .69 per pound for thighs, .99 for breasts, the ratio of breasts to thighs is 2:1, 2 pounds of breast meat to 1 pound of thigh meat 1 pound of carrots .39 per pound 5 stalks of celery, chopped .79 per bunch, average 8 stalks per bunch 3 cups of dried egg noodles $1.00 for a 36 oz. bag of noodles 1 ounce of seasoning $2.00 per pound Salt and Pepper .15 each Condiments (misc. seasonings) 0.50 PACKAGING 8 oz containers with lid .75 for both Spoon & napkins average .25 per order (whether take out or eat-in) 12 oz container with lid .90 for both LABOR Time to grind chicken 15 minutes for 5 pounds Time to chop celery 15 minutes for whole bunch Time to chop carrot 10 minutes per pound Time to cook the chicken 20 minutes total Packaging time average 5 minutes Time to assemble ingredients & put in soup 15 minutes per batch (5 gallons) Time to reorder groceries 1 hour per week Time to count inventory & determine need 2 hours per week Counter staff (serving in customers) 15 minutes per customer Cleaning work 2.5 hours a day To-go time 10 minutes per order Time to complete acctg & tax requirements 3-5 hours per week OVERHEAD Utilities $800 per month Rent on building $3,200 per month Depreciation of Kitchen equipment $700 per month Depreciation of Office equipment $1000 per month On average on any given day, 80% of the chicken used in the soup consists of the leftover cooked chicken from the prior day. The remaining 20% consists of fresh chicken cooked for the soup then added. The building which houses the restaurant consists of two floors with the restaurant and storeroom on the first level and an office and office storage area on the second level. It has 2,000 square feet for the upper-level office and 100 for the storage area; the square footage for the lower level is 1,800 Sq. ft. for the restaurant and 700 sq.ft. for the storeroom. There are 3 workers: Gina, who takes a salary of $5,000 per month and two worker paid $20/hour. Gina orders the groceries and takes inventory. The two hourly employees serve the customers, pack the soup, prep the ingredients for the soup, cook the chicken, and clean up. Gina makes the soup and oversees the restaurant & is also the cashier. The hourly workers work 40 hour weeks. Gina sells the 8oz cup of soup for $3.99 and the 12 oz for $5.49. On average Gina sells 5,500 cups of soup a month: 3,000 of the 8 oz and 2,500 of the 12 oz. Gina has the capacity to make 6,000 cups of soup a month-in the same ratio as noted here (3,000:2,500). MATERIALS COST 6 gallons of filtered water $1.00 per five gallon jug 3 pounds of chicken, breasts, thigh ground .69 per pound for thighs, .99 for breasts, the ratio of breasts to thighs is 2:1, 2 pounds of breast meat to 1 pound of thigh meat 1 pound of carrots .39 per pound 5 stalks of celery, chopped .79 per bunch, average 8 stalks per bunch 3 cups of dried egg noodles $1.00 for a 36 oz. bag of noodles 1 ounce of seasoning $2.00 per pound Salt and Pepper .15 each Condiments (misc. seasonings) 0.50 PACKAGING 8 oz containers with lid .75 for both Spoon & napkins average .25 per order (whether take out or eat-in) 12 oz container with lid .90 for both LABOR Time to grind chicken 15 minutes for 5 pounds Time to chop celery 15 minutes for whole bunch Time to chop carrot 10 minutes per pound Time to cook the chicken 20 minutes total Packaging time average 5 minutes Time to assemble ingredients & put in soup 15 minutes per batch (5 gallons) Time to reorder groceries 1 hour per week Time to count inventory & determine need 2 hours per week Counter staff (serving in customers) 15 minutes per customer Cleaning work 2.5 hours a day To-go time 10 minutes per order Time to complete acctg & tax requirements 3-5 hours per week OVERHEAD Utilities $800 per month Rent on building $3,200 per month Depreciation of Kitchen equipment $700 per month Depreciation of Office equipment $1000 per month
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The labor rate variance measures the difference between the actual and expected cost of labor It is ... View the full answer
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