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Standard Costs and Variances EXERCISE 10–2 Direct Labor Variances LO10-2 code SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,000 of these meals using 960 direct labor-hours. The company paid its direct labor workers a total of $19,200 for this work, or $20.00 per hour. According to the standard cost card for this meal, it should require 0.25 direct labor-hours at a cost of $19.75 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,000 meals? What is the standard labor cost allowed (SH × SR) to prepare 4,000 meals? What is the labor spending variance? 2. 3. 4. What is the labor rate variance and the labor efficiency variance? rhead Variances LO10-3 merchants. The company main-

Standard Costs and Variances EXERCISE 10–2 Direct Labor Variances LO10-2 code SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,000 of these meals using 960 direct labor-hours. The company paid its direct labor workers a total of $19,200 for this work, or $20.00 per hour. According to the standard cost card for this meal, it should require 0.25 direct labor-hours at a cost of $19.75 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,000 meals? What is the standard labor cost allowed (SH × SR) to prepare 4,000 meals? What is the labor spending variance? 2. 3. 4. What is the labor rate variance and the labor efficiency variance? rhead Variances LO10-3 merchants. The company main-

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Standard Costs and Variances EXERCISE 10–2 Direct Labor Variances LO10-2 code SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,000 of these meals using 960 direct labor-hours. The company paid its direct labor workers a total of $19,200 for this work, or $20.00 per hour. According to the standard cost card for this meal, it should require 0.25 direct labor-hours at a cost of $19.75 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,000 meals? What is the standard labor cost allowed (SH × SR) to prepare 4,000 meals? What is the labor spending variance? 2. 3. 4. What is the labor rate variance and the labor efficiency variance? rhead Variances LO10-3 merchants. The company main-
Transcribed Image Text:Standard Costs and Variances EXERCISE 10–2 Direct Labor Variances LO10-2 code SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,000 of these meals using 960 direct labor-hours. The company paid its direct labor workers a total of $19,200 for this work, or $20.00 per hour. According to the standard cost card for this meal, it should require 0.25 direct labor-hours at a cost of $19.75 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,000 meals? What is the standard labor cost allowed (SH × SR) to prepare 4,000 meals? What is the labor spending variance? 2. 3. 4. What is the labor rate variance and the labor efficiency variance? rhead Variances LO10-3 merchants. The company main-
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