3- Homework-10-1, 10-2- 50 points Help Save & Exit Submit Check my work SkyChefs

Question

3- Homework-10-1, 10-2- 50 points Help Save & Exit Submit Check my work SkyChefs, Inc. prepares in-flight meals for a number of major airlines. One of the with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,400 of these meals using 1,700 direct labor-hours. The company paid its direct labor workers a total of $17000 for this work, or $10.00 per hour s products is grilled salmon in dill sauce According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $9.40 per hour Required 1. What is the standard labor-hours allowed (SH) to prepare 4.400 meals? 2. What is the standard labor cost allowed (SH x SR) to prepare 4.400 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 unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.) spending variance Labor rate variance efficiencv variance

Explanation / Answer

Req 1: Actual output: 4400 units Std hours allowed per unit of output: 0.40 hours per unit Standard Hours allowed (4400 units @0.40 hours) : 1760 hours Req 2: Standard cost per hour: $ 9.40 per hour Standard labour c ost: 1760 hours @$9.40 per hour : $16,544 Req 3: Labour speding Variance: Std labour cost allowed - Actual labor cost $ 16,544 - $17,000 = $ 456 unfavorable Req 4: Labour rate variance: Actual Hours worked (Std rate per hour - Actual Labour rate per hour) 1700 hours (9.40 -10.00 ) = $ 1,020 unfavorable Labour efficiency variance= Std rate per hour (Std hours-Actual hours) 9.40 (1760 -1700 ) = $ 564 favorable

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