Connect my work mode: This shows what is correct or incorrect for the work you h

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Connect my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 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 7,000 of these meals using 2,700 direct labor-hours. The company paid its direct labor workers a total of $27,000 for this work, or $10.00 per hour. According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $9.30 per hour Required: 1. What is the standard labor-hours allowed (SH) to prepare 7,000 meals? 2. What is the standard labor cost allowed (SH x SR) to prepare 7,000 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.) Answer is not complete. 2,800 26,040 1. Standard labor-hours allowed 2 Standard labor cost allowed 3. Labor spending variance 4. Labor rate variance 1,890 OU O Labor efficiency variance MacBook A

Explanation / Answer

Req 1 Std labour hour per unit of output: 0.40 hour per unit Actual output: 7000 units Std labour hours allowed: 7000 units @ 0.40 hour per unit = 2800 hours Req 2: Std hours allowed: 2800 hours Std rate per hour: $ 9.30 per hour Std labour cost for actual output: 2800 hours@ $ 9.30 per hour = $ 26,040 Req 3: Std labour cocst: $ 26040 Actual labour cost: $ 27000 Labour spending variance= Std labour ccost-Actual cost incurred 26040- 27000 = $ 960 Unfav Req 4: Labour rate vraince: Actual hours (Std rate -Actual rate per hour) 2700 hours (9.30-10.00)= $ 1890 Unfav labour efficiency variance= Std rate per hour (Std hours-Actual Hours) 9.30 (2800-2700)= $ 930 Fav

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