ezto mheducal Question 3 (of 9) 1.00 points SkyChefs, Inc., prepares in-flight m

Question

ezto mheducal Question 3 (of 9) 1.00 points 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 now potatoes and spring vegetables. During the most recent week, company prepared 7,200 of these labor workers a total of $31,500 for this work, or $9.00 per hour nbor wrorkers a total of $1,6.0 to this wonk ufr o o abor-hours. The company paid those diredt According to the standard cost card for this meal, it should require 0.50 direct labor-hours at a cost of $8.50 per hour Required: 1. According to the standards, what direct labor cost should have been incurred to prepare 7,200 meals? How much does this differ from the actual direct labor cost? (Round labor-hours per meal and labor cost per hour to 2 decimal places.) Number of meals prepared Standard direct labor-hours per meal Total direct labor-hours allowed Standard direct labor cost per hour Total standard direct labor cost Actual cost incurred Total standard direct labor cost Total direct labor variance 2 Break down the difference computed in (1) above into a labor rate variance and a labor efficiency for favorable, "U* for unfavorable, and "None" for no effect (i.e., zero variance).) Labor rate variance Labor efficiency varianice

Explanation / Answer

1) Calculate difference in actual cost and standard cost :

Labour rate variance = (8.50-9)*3500 = 1750 U

Labour efficiency variance = (3600-3500)*8.50 = 850 F

Number of meals prepared 7200 Standard direct labour hour per meal 0.50 Total direct labour hour allowed 3600 standard direct labour cost per hour 8.50 Standard labour cost 30600 Actual cost incurred 31500 Total standard direct labour cost 30600 Total direct labour variance 900 Unfavorable

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