Exercise 9-5 (Algo) Direct Labor Variances [LO9-5) SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 6,200 of these meals using 1.200 direct labor-hours. The company paid its direct labor workers a total of $10,800 for this work, or $9.00 per hour. According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of $8.50 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 6.200 meals? 2. What is the standard labor cost allowed (SHSR) to prepare 6,200 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 favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Do not round Intermediate calculations.) 1. Standard labor-hours allowed 2. Standard labor cost allowed 3. Labor spending variance 4. Labor rate variance 4. Labor efficiency variance Exercise 9-6 (Algo) Variable Overhead Variances (LO9-6) Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours In the most recent month, 180,000 items were shipped to customers using 7,700 direct labor-hours. The company incurred a total of $26,180 in variable overhead costs. According to the company's standards, 0.03 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.45 per direct labor-hour, Required: 1. What is the standard labor-hours allowed (SH) to ship 180,000 items to customers? 2. What is the standard variable overhead cost allowed (SHSR) to ship 180,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the variable overhead efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard quantity of tabor hours allowed 2. Standard variable overhead cost allowed 3. Variable overhead spending variance 4. Variable overhead rato variance 4. Variable overhead officiency variance Problem 9-21 (Algo) Multiple Products, Materials, and Processes (L09-4, LO9-5) Mickley Corporation produces two products, Alphabs and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials-X442 and Y661. The company uses a standard cost system, with the following standards for each product (on a per unit basis): Product Alpha 6 Zeta Raw Material X442 Y661 3.0 kilos 3.0 liters 5.0 kilos 5.0 liters Standard Labor Time Sintering Finishing 0.30 hours 1.10 hours 0.40 hours 1.20 hours Information relating to materials purchased and materials used in production during May follows: Purchase Material Purchases Cost Standard Price X442 15,300 kilos $ 44,370 $ 2.70 per kilo 7661 16,300 liters $ 26,080 $ 1.70 per Hter The following additional Information is available: Used in Production 9,800 kilos 14,300 liters a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $23.00 per hour in Sintering and $21.50 per hour in Finishing. c. During May. 1,320 direct labor-hours were worked in Sintering at a total labor cost of $32,340, and 2,980 direct labor-hours were worked in Finishing at a total labor cost of $70,030. d. Production during May was 1,900 Alpha6s and 900 Zeta7s. Required: 1. Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor. 2. Compute the materials price and quantity variances for each material. 3. Compute the labor rate and efficiency variances for each operation Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor. (Round your answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the standard cost card for each product, showing the standard cost of direct materials an answers to 2 decimal places.) Standard Quantity or Hours Standard Price or Rate Standard Cost kilos liters Alpha 6: Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total per kilo per liter per hour hours hours per hour Zeta7: kilos liters Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total per kilo per liter per hour per hour hours hours Record Required 2 > Required 1 Required 2 Required 3 Compute the materials price and quantity variances for each material. (Indicat favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). In Direct Materials Variances-Material X442: Materials price variance Materials quantity variance Direct Materials Variances-Material Y661: Materials price variance Materials quantity variance