SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of

ID: 2530886 • Letter: S

Question

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 6,300 of these meals using 1,800 direct labor-hours. The company paid these direct labor workers a total of $18,000 for this work, or $10.00 per hour.

According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $9.20 per hour.

According to the standards, what direct labor cost should have been incurred to prepare 6,300 meals? How much does this differ from the actual direct labor cost? (Round labor-hours per meal and labor cost per hour to 2 decimal places.)

Break down the difference computed in (1) above into a labor rate variance and a labor efficiency variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Explanation / Answer

1 Number of meals prepared 6300 Standard direct labor-hours per meal 0.3 Total direct labor-hours allowed 1890 Standard direct labor cost per hour 9.2 Total standard direct labor cost 17388 Actual cost incurred 18000 Total standard direct labor cost 17388 Total direct labor variance 612 Unfavorable 2 Labor rate variance 1440 U =18000-(1800*9.2) Labor efficiency variance 828 F =9.2*(1800-1890)

Navigate

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of

Question

Explanation / Answer

Related Questions

Navigate