Suppose you manage the local scoopy's ice cream parlor. in addition to selling ice-cream cones, you make large batches of a few flavors of milk shakes to sell throughout the day. your parlor is chosen to test the company's made-for-you system. this new system enables patrons to customize their milk shakes by choosing different flavors.

customers like the new system and your staff appeal to be adapting, by you wonder whether this new made to order system is as efficient as the old system in which you made a few large batches. efficiency is special concern because your performance is evaluated in part on the restaurants efficient use of materials and labor. your superiors consider efficiency variances greater than 5% to be unacceptable.

you decide to look at your sales for a typical day. you find that the parlor used 390 pounds of ice cream and 72 hours of direct labor to produce and sell 2,000 shakes. the standard quantity allowed for the shake is 0.2 pound of ice cream and 0.03 hour of direct labor. the standard costs are $1.50 per pound for ice cream and $8 per hour for labor.

requirements:

1) compute the efficiency variances for direct labor and direct materials.
2) provide likely explanations for the variances. do you have a reason to be concerned about your performance evaluation? explain.
3) create a memo to scoopys national office explaining your concern and suggesting a remedy.

The starr theater, owned by meg vargo, will begin operations in march. the starr will be unique in that it will show only triple features of sequential theme movies. as of march 1, the ledger of starr showed: cash $3,150, land $22,000, buildings (concession stand, projection room, ticket booth, and screen) $10,000, equipment $10,000, accounts payable $7,300, and owner’s capital $37,850. during the month of march, the following events and transactions occurred. mar. 2 rented the three indiana jones movies to be shown for the first 3 weeks of march. the film rental was $3,600; $1,600 was paid in cash and $2,000 will be paid on march 10.3 ordered the lord of the rings movies to be shown the last 10 days of march. it will cost $200 per night.9 received $4,500 cash from admissions.10 paid balance due on indiana jones movies rental and $2,200 on march 1 accounts payable.11 starr theater contracted with adam ladd to operate the concession stand. ladd is to pay 15% of gross concession receipts, payable monthly, for the rental of the concession stand.12 paid advertising expenses $900.20 received $5,100 cash from customers for admissions.20 received the lord of the rings movies and paid the rental fee of $2,000.31 paid salaries of $2,900.31 received statement from adam ladd showing gross receipts from concessions of $6,000 and the balance due to starr theater of $900 ($6,000 × 15%) for march. ladd paid one-half the balance due and will remit the remainder on april 5.31 received $9,200 cash from customers for admissions.1.) enter the beginning balances in the ledger.2.) journalize the march transactions. starr records admission revenue as service revenue, rental of the concession stand as rent revenue, and film rental expense as rent expense. (credit account titles are automatically indented when the amount is entered. do not indent manually. record journal entries in the order presented in the problem. if no entry is required, select "no entry" for the account titles and enter 0 for the amounts.)3.) post the march journal entries to the ledger. (post entries in the order of journal entries presented in the previous question.)