2. ToGo Meals, Inc, prepares packaged meals for busy commuters to \"grab & go.\"

Question

2. ToGo Meals, Inc, prepares packaged meals for busy commuters to "grab & go." One of the company's products is a BLT on oat wheat bread with honey-Dijon mustard. During the most recent week, the company prepared 8,000 of these meals using 2,480 direct labor-hours. The company paid these direct labor workers a total of $24,180 for this work, or $9.75 per hour. According to the standard cost ca cost of $10.00 per hour. rd for this meal, it should require 0.30 direct labor-hours ata Required: What is the standard labor-hours allowed (SH) to prepare 8,000 meals? What is the standard labor cost allowed (SH x SR) to prepare 8,000 meals? What is the labor spending variance? What is the labor rate variance and the labor efficiency variance? 1. 2. 3. 4.

Explanation / Answer

1) Standard labour hour allowed = 8000*.30 = 2400 Hour

2) Standard cost allowed = 2400*10 = 24000

3) Labour spending variance = 24000-24180 = 180 U

4) Labour rate variance = (10-9.75)*2480 = 620 F

Labour efficiency variance = (2400-2480)*10 = 800 U

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.