Aircooks Inc., prepares in-flight meals for a number of major airlines. One of the compay's product is grilled salmon in dill sauce with new baby potatoes and spring vegetables. During the most recent week, during the most recent week the company prepared 4,000 of these meals using 960 direct labor hours. The companypaid these direct labor eorkers a total of $9,600 this work, or $10 per hour.

According to the standard cost card for this meal, it should require 0.25 direct labor-hours at a cost of $9.75 per hour.

Required:

1a. How many hours should have been used?

Total direct labor-hours allowed

1b. What direct labor cost should have been incurred to prepare the 4,000 meals?

Total standard labor cost

1c. How much does this cost vary from what aws incurred? What is this variance called? (Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and None for no effect)

Total direct labor variance

2. Break the difference computed in part (1b) into a labour rate variance and labour effeciency variance. (Indicate the effect of each variance by selcting F for favourable, U for unfavourable, and None for no effect.)

Labour variance rate
Labour effeciency variance