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AirCooks, Inc. prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with new baby
AirCooks, Inc. prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with new baby potatoes and spring vegetables. During the most recent week, the company prepared 4,000 of these meals using 960 direct labour-hours. The company paid these direct labour workers a total of $9,600 for this work, or $10 per hour. According to the standard cost card for this meal, it should require 0.25 direct labour-hours at a cost of $9.75 per hour Required: 1-a. How many hours should have been used? Total direct labour-hours allowed 1-b. What direct labour cost should have been incurred to prepare the 4,000 meals? Total standard direct labour cost
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