2:46 1 ezto.mheducation.com E connect SkyChefs, Inc. prepares in-flight meals fo

Question

2:46 1 ezto.mheducation.com E connect SkyChefs, Inc. prepares in-flight meals for a number of major airlines. One of the company's products is grilled samon in dill sauce wih baby new potatoes and spring vegetables During the most recent week, 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 Accoeding to the standard cost cand for this meal it should require 0.20 direct labor hours at a cost of $9.50 per hour 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.) Break down the diflerence computed in (1) above into a labor rate variance and a labor efficiency variance (Indicate the effect of each variance by selecting F for favorable, for unfavorable, and "None" for no effect (i.e, zero

Explanation / Answer

Answer 1. Number of Meals Prepared           6,000 Standard direct labor hours per meal             0.20 Total direct labor hours allowed           1,200 Standard direct labor cost per hour             9.50 Total Standard Direct Labor Cost        11,400 Actual Cost Incurred        11,500 Total Standard Direct Labor Cost        11,400 Total Direct Labor Variance              100 (U) Answer 2. Labor Rate Variance = (SR - AR) X AH Labor Rate Variance = ($9.50 - $10) X 1,150 Hrs Labor Rate Variance = $575 (U) Labor Efficiency Variance = (SH - AH) X SR Labor Efficiency Variance = (1,200 Hrs - 1,150 Hrs) X $9.50 Labor Efficiency Variance = $475 (F) As per Chegg Guidelines, you can ask one question at a time.

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