Check my work 2 SkyChefs, Inc., prepares in-flight meals for a number of major a

Question

Check my work 2 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 6,300 of these meals using 1,800 direct labor-hours. The company paid its direct labor workers a total of $18,000 for this work, or $10.00 per hour 10 According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $9.20 per hour ints Required 1. What is the standard labor-hours allowed (SH) to prepare 6,300 meals? 2. What is the standard labor cost allowed (SH SR) to prepare 6,300 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? eBook Hint Print References (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.) Standard labor-hours allowed 2. Standard labor cost allowed 3. Labor spending variance 4. Labor rate variance Labor efficiency variance

Explanation / Answer

a) Standard labour hour allowed = 6300*.30 = 1890 hour

b) Standard cost allowed = 1890*9.2 = 17388

c) Labour spending variance = 17388-18000 = 612 Unfavorable

d) Labour rate variance = (9.2*1800-18000) = 1440 Unfavorable

Labour efficiency variance = (1890-1800)*9.2 = 828 Favorable

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