100 points SkyChofs, Inc., prepares in-fight meals for a number of major airline

Question

100 points SkyChofs, Inc., prepares in-fight meals for a number of major airlines. One of the company's products s griled salmon in dil sauce with baby new potatoes and spring vegetables. During the most recent weok, the company prepared 6,000 of these meals using 1,150 direct labor-hours. The company paid these direct labor workers a total of $11,500 for this work, or $10.00 per hour According to the standard cost card for this meal, it should require 0 20 direct labor-hours at a cost of $9.50 per hour 1. According to the standards, what direct labor cost should have been incurred to prepare 6,000 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 effciency Ondicate the effect of each variance by selecting "F" for favorable, ?-for unfavorable. and "None" for no effect (i.e, zero variance),) rate variance MacBook Air -t6 O FA F3 esc F1 F2 8

Explanation / Answer

Solution 1:

Solution 2:

Direct labor rate variance = (SR - AR) * AH = ($9.50 - $10) * 1150 = $575 U

Direct labor efficiency variance = (SH - AH) * SR = (1200 - 1150) * $9.50 = $475 F

Compuation of standard direct labor cost Particulars Amount Nos of meal prepared 6000 Standard direct labor hours per meal 0.2 Total direct labor hours allowed 1200 Standard direct labor cost per hour $9.50 Total standard direct labor cost $11,400.00 Actual cost incurred $11,500.00 Total standard direct labor cost $11,400.00 Total direct labor variance $100.00 Unfavorable

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