Session 5 Chapter 8 Homework

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 4,800 of these meals using 882 direct labor-hours. The company paid these direct labor workers a total of $10,143 for this work, or $11.50 per hour.

According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of $10.50 per hour.