SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon wit new potatoes and mixed vegetables. During the most recent week, the company prepared 4,000 of these meals using 750 direct labor-hours. The company paid its direct labor workers a total of $6,000 for this work, or $8.00 per hour. According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of $7.00 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,000 meals? 2. What is the standard labor cost allowed (SH x SR) to prepare 4,000 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" f no effect (i.e., zero variance). Input all amounts as positive values.) 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-flight meals for a number of major airlines. One of the company's products is grilled salmon wit new potatoes and mixed vegetables. During the most recent week, the company prepared 4,000 of these meals using 750 direct labor-hours. The company paid its direct labor workers a total of $6,000 for this work, or $8.00 per hour. According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of $7.00 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,000 meals? 2. What is the standard labor cost allowed (SH x SR) to prepare 4,000 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" f no effect (i.e., zero variance). Input all amounts as positive values.) 1. Standard labor-hours allowed 2 Standard labor cost allowed 3. Labor spending variance 4 Labor rate variance 4. Labor efficiency variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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 4,000 of these meals using 750 direct
labor-hours. The company paid its direct labor workers a total of $6,000 for this work, or $8.00 per hour.
According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of $7.00 per hour.
Required:
1. What is the standard labor-hours allowed (SH) to prepare 4,000 meals?
2. What is the standard labor cost allowed (SH x SR) to prepare 4,000 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 (l.e., zero variance). Input all amounts as positive values.)
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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