SkyChefs, Incorporated, prepares in-fight meals for a number of major airlines. One of the company's products...
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SkyChefs, Incorporated, prepares in-fight 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 6,300 of these meals using 1,800 direct labor-hours. The company paid its direct labor workers a total of $18,000 for this work, or $10.00 per hour, According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $9.20 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 6,300 meals? 2. What is the standard labor cost allowed (SH x SR) to prepare 6,300 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 (i.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 SkyChefs, Incorporated, prepares in-fight 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 6,300 of these meals using 1,800 direct labor-hours. The company paid its direct labor workers a total of $18,000 for this work, or $10.00 per hour, According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $9.20 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 6,300 meals? 2. What is the standard labor cost allowed (SH x SR) to prepare 6,300 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 (i.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
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Solution 1 standard laborhours allowed SH to prepare 6300 meals 1890 hours Working Notes standard la... View the full answer
Related Book For
Managerial accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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