SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of

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 4,800 of these meals using 2,350 direct labor-hours. The company paid these direct labor workers a total of $23,500 for this work, or $10.00 per hour According to the standard cost card for this meal, it should require 0.50 direct labor-hours at a cost of $9.40 per hour. Required 1. According to the standards, what direct labor cost should have been incurred to prepare 4,800 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

Explanation / Answer

Answer:-

No. of meals prepared

4800

Standard direct labor hours per meal

0.50

Total Direct labor –hour allowed

$2,400

Standard direct labor cost per hour

9.40

Total Standard direct labor cost

$22,560

Actual cost incurred

$23,500

Total Standard direct labor cost

$22,560

Total direct labor variance

$940

Favorable

2.

Actual hours of input at Actual rate (AH*AR)( 2,350*10per hour)

$23500

Actual hours of input at standard rate(AH*SR)(2,350*9.40 per hour)

$22,090

Standard hours allowed for output at the standard rate (SH*SR)(2400*9.40 per hour)

$22,560

Labor Rate variance = AH(AR-SR)

                                 = $2350($10-$9.40)

                                =$2350*0.6

                                =$1,410 F

Labor Efficiency Variance =SR(AH-SH)

                                            =$9.40($2350-$2400)

                                           = $9.40*50

                                           =$470 U

No. of meals prepared

4800

Standard direct labor hours per meal

0.50

Total Direct labor –hour allowed

$2,400

Standard direct labor cost per hour

9.40

Total Standard direct labor cost

$22,560

Actual cost incurred

$23,500

Total Standard direct labor cost

$22,560

Total direct labor variance

$940

Favorable

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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