Question
SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the companys products is grilled salmon in dill sauce with baby new
SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the companys 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 these 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. According to the standards, what direct labor cost should have been incurred to prepare 6,200 meals? How much does this differ from the actual direct labor cost? 1)standard direct labor-hours per meal? 2)standard direct labor cost per hour? 3)actual cost incurred? 4)total standard direct labor cost? 5)total direct labor variance? Break down the difference computed in (1) above into a labor rate variance and a labor efficiency variance.
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