Exercise $10-2($Algo$)$ Direct Labor Variances $[$LO$10-2]$

SkyChefs, Incorporated, prepares in$-$flight meals for a number of major airlines. One of the company$$s products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared $7,300$ of these meals using $1,450$ direct labor$-$hours. The company paid its direct labor workers a total of $$14,500$ for this work, or $$10\mathrm{.}00$ per hour.

According to the standard cost card for this meal, it should require $0\mathrm{.}20$ direct labor$-$hours at a cost of $$9\mathrm{.}50$ per hour.

Required:

$1.$ What is the standard labor$-$hours allowed $($SH$)$ to prepare $7,300$ meals?

$2.$ What is the standard labor cost allowed $($SH $$ SR$)$ to prepare $7,300$ meals?

$3.$ What is the labor spending variance?

$4.$ What is the labor rate variance and the labor efficiency variance?