https Chapter 10 Homework Check m 2 SkyChefs, Inc.. prepares in-flight meals for
ID: 2540822 • Letter: H
Question
https Chapter 10 Homework Check m 2 SkyChefs, Inc.. prepares in-flight meals for a number of major airlines One of the company's products is grilled salmon in dilsauce 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 its 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 $9.20 per hour 1. What is the standard labor-hours allowed (SH) to prepare 6,300 meals? 2 What is the standard labor cost allowed (SH SR) to prepare 6,300 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavor no effect G.e., zero variance). Input all amounts as positive values. Do no round intermediate celculations) andExplanation / Answer
Ans)
1) Number of meals prepared ...................6300
Standard direct labor-hours per meal .... 0.3
Total direct labor-hours allowed ............ 6300 X 0.3 = 1890
2) Standard direct labor cost per hour ....... 9.2
Total standard direct labor cost ............ 1890 X 9.2 = 17388
3) Actual cost incurred ............................. 18000
Total standard direct labor cost (above) 17388
Total direct labor variance ....................$ 612 un favourable
4) Labor rate variance = AH(AR – SR)
= 1800 ( 10 - 9.2)
= 1440 Unfavourable
Labor efficiency variance = SR(AH – SH)
= 9.2 ( 1800 - 1890)
= 828 Favourable
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