Assignment 9-1 Week 9 Practice Saved Help S 2 SkyChefs, Inc., prepares in-flight

Question

Assignment 9-1 Week 9 Practice Saved Help S 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 4,800 of these meals using 882 direct labor-hours. The company paid its direct labor workers a total of $10,143 for this work, or $11.50 per hour. points According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of $10.50 per hour. Required 1. What is the standard labor-hours allowed (SH) to prepare 4,800 meals? 2. What is the standard labor cost allowed (SH SR) to prepare 4,800 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? eBook Hint (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.) rint 1. Standard labor-hours allowed 2. Standard labor cost allowed 3. Labor spending variance Labor rate variance Labor efficiency variance

Explanation / Answer

Actual Output 4800 Actual Data: Hours Rate Amt Direct Labor 882 11.50 10143 Standard Data PU: Hours Rate Amt Direct Labor 0.20 10.50 2.10 1 Standard Labor hour Allowed: (Standard Hour PU*Actual Output) (0.20*4800) 960 Hours 2 Standard Labor Cost Allowed: (Standard Hour Allowed*Standard Price) (960*10.50) 10080 3 Labor Spending Variance (Standard Cost-Actual Cost) (10080-10143) -63 Unfavourable 4 Labor Rate Variance (Standard Rate-Actual Rate)*Actual Hours (10.50-11.50)882 -882 Unfavourable 5 Labor Efficiency Variance (Standard Hours-Actual Hours)*Standard Rate (960-882)10.50 819 Favourable

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