Help Save& Exit Submit Check my SkyChefs, Inc, prepares in-flight meals for a nu

Question

Help Save& Exit Submit Check my SkyChefs, Inc, prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dil sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 3,500 of these meals using 950 direct labor-hours. The company paid its direct labor workers a total of $10,450 for this work, or $11.00 per hour According to the standard cost card for this meal it should require 0.30 direct labor-hours at a cost of $9 50 per hour 02) Required: 1. What is the standard labor hours allowed (SH) to prepare 3,500 meals? 2. What is the standard labor cost allowed (SH 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-P for favorable, ?. for unfavorable, and-None-for eence no effect Ge zero variance). Input all amounts as positive values. De no round intermediate calculations.) cost allowed efficlency variance Pre4of4 Next command option

Explanation / Answer

1) Standard labor hours allowed 3500*.3 1,050 hrs answer 2) Standard labor cost allowed 1050*9.50 9975 3) labor spending variance 10,450 - 9975 475 U 4) labor rate variance (Actual rate - standard rate)*actual hours (11 -9.5)*950 1425 U labor Efficiency variance (Actual hours - standard hrs allowed)*Standard rate (950 - 1050)*9.5 950 F

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