Safari File Edit View History Bookmarks Window Help Confirmation-FAFSA on the We
ID: 2546369 • Letter: S
Question
Safari File Edit View History Bookmarks Window Help Confirmation-FAFSA on the Web-Federal Student Aid Chapter 8 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 6,600 of these meals using 1,950 direct labor-hours. The company paid these direct labor workers a total of $27,300 for this work, or $14.00 per hour According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $13.00 per hour Required: 1. According to the standards, what direct labor cost should have been incurred to prepare 6,600 meals? How much does this diffier from the actual direct labor cost? (Round labor-hours per meal and labor cost per hour to 2 decimal places.) Number of meals prepared Standard direct labor-hours per meal Total direct labor-hours allowed Standard direct labor cost per hour Total standard direct labor cost Actual cost incurred Total standard direct labor cost Total direct labor variance 2. Break down the difference computed in (1) above into a labor rate variance and a labor efficiency of each variance by selecting-F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Labor rate variance Labor efficiency variance 18Explanation / Answer
2)Labora rate variance :AH[AR-SR]
= 1950 [14-13]
= 1950*1
= 1950 U
Labor efficiency variance : SR[AH-SH]
13[1950-1980]
13*-30
-390 F`
Number of meals prepared 6600 standard direct labor hours per meal .30 Total direct labor hours allowed 6600*.30=1980 standard direct labor cosr per hour 13 Total s tandard direct labor cost 1980*13=25740 Actual cost 27300 standard cost 25740 Labor variance 1560 URelated Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.