Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SkyCooks Ltd. prepares in-flight meals for a number of major airlines. One of the company's products is grilled chicken in dill sauce with new

image text in transcribed

SkyCooks Ltd. prepares in-flight meals for a number of major airlines. One of the company's products is grilled chicken in dill sauce with new baby potatoes and spring vegetables. During the most recent week, the company prepared 4,000 of these meals using 1,000 direct labour-hours. The company paid these workers a total of $10,000 for this work, or $10 per hour. According to the standard cost card for this meal, it should require 0.2 direct labour-hours at a cost of $11 per hour Required: 1-a. How many hours should have been used? Total direct labour hours allowed 1-b. What direct labour cost should have been incurred to prepare the 4,000 meals? Total standard direct labour cost 1-c. How much does this cost vary from what was incurred? What is this variance called? (Indicate the effect of each varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (1.e., zero varlance).) Total direct labour variance 2. Break the difference computed in part (1-b) into a labour rate variance and a labour efficiency variance. (Indicate the effect of ach varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (Le., zero varlance).) Labour rate variance Labour efficiency variance

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

Survey of Accounting

Authors: Edmonds, old, Mcnair, Tsay

2nd edition

9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555

More Books

Students also viewed these Accounting questions

Question

Have you kept/did you keep all your agreements? Explain.

Answered: 1 week ago