Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AirMeals, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is stuffed cannelloni with roasted pepper sauce, fresh baby

image text in transcribed
AirMeals, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is stuffed cannelloni with roasted pepper sauce, fresh baby corn, and spring salad. During the most recent week, the company prepared 4, 800 of these meals using 882 direct labor-hours. The company paid these direct labor workers a total of $10, 143 for this work, or $11.50 per hour. According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of $10.50 per hour. 1a. According to the standards, what direct labor cost should have been incurred to prepare 4, 800 meals? (Omit the "$" sign in your response.) Total standard direct labor cost 1b. How much does this differ from the actual direct labor cost? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Spending variance Break down the difference computed in (1) above into a labor rate variance and a labor efficiency variance. (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Medical Audits In Developing Countries The Challenges And Solutions

Authors: Hussein Lesio Kidanto

1st Edition

9783639300338, 978-3639300338

More Books

Students also viewed these Accounting questions

Question

explain the concept of strategy formulation

Answered: 1 week ago