EXERCISE $10-2$ Direct Labor Variances LO$10-2$

SkyChefs, Inc., prepares in$-$flight meals for a number of major airlines. One of the company's products is grilled salmon

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with new potatoes and mixed vegetables. During the most recent week, the company prepared $4,000$ of these meals using $960$ direct labor$-$hours. The company paid its direct labor workers a total of $$19,200$ for this work, or $$20\mathrm{.}00$ per hour.

According to the standard cost card for this meal, it should require $0\mathrm{.}25$ direct labor$-$hours at a cost of $$19\mathrm{.}75$ per hour.

Required:

What is the standard labor$-$hours allowed $(SH)$ to prepare $4,000$ meals?

What is the standard labor cost allowed $(SHSR)$ to prepare $4,000$ meals?

What is the labor spending variance?

What is the labor rate variance and the labor efficiency variance?