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Exercise 1 0 - 2 ( Algo ) Direct Labor Variances [ LO 1 0 - 2 ] SkyChefs, Incorporated, prepares in - flight meals
Exercise Algo Direct Labor Variances LO
SkyChefs, Incorporated, prepares inflight meals for a number of major airlines. One of the companys products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared of these meals using direct laborhours. The company paid its direct labor workers a total of $ for this work, or $ per hour.
According to the standard cost card for this meal, it should require direct laborhours at a cost of $ per hour.
Required:
What is the standard laborhours allowed SH to prepare meals?
What is the standard labor cost allowed SH times SR to prepare meals?
What is the labor spending variance?
What is the labor rate variance and the labor efficiency variance?
For requirements and indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
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