Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 10-2 (Algo) Direct Labor Variances SkyChefs, Inc., prepares in flight meals for a number of major airlines. One of the company's products is grilled
Exercise 10-2 (Algo) Direct Labor Variances SkyChefs, Inc., prepares in flight meals for a number of major airlines. One of the company's products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 6,500 of these meals using 3,200 direct labor hours. The company paid its direct labor workers a total of $36.800 for this work, or $1150 per hour According to the standard cost card for this meal, it should require 0.50 direct labor hours at a cost of $1100 per hour Required: 1. What is the standard labor hours allowed (SH) to prepare 6,500 meals? 2. What is the standard labor cost allowed (SHSR) to prepare 6,500 meals? 3. What is the labor spending variance? 4 What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4 indicate the effect of each variance by selecting "F" for fovorable, "U" for unfavorable, and "Nono" for no effect (le, zero variance). Input all amounts os positive volues. Do not round Intermediate calculations.) 1 2 3 Standard labor hours allowed Standard labor cost allowed Labor spending variance Laborrate variance Labor officiency variance 4
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started