13SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon withmixed vegetables. During the most recent week, the company prepared 4,800 of these meals using 2,350 direct labor-hours. Thecompany paid its 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-hour at a cost of $9.40 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 x SR) to prepare 4,800 meals?3. What is the labor spending variance?4. What are the labor rate variance and the labor efficiency variance?Note: 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.1. Standard labor-hours allowed2. Standard labor cost allowed3. Labor spending variance4. Labor rate variance4. Labor efficiency variance

Step 1: Standard Labor Hours Allowed=4,800 meals×0.50 hours/meal=2,400 hour Step 2: Standard Labor…

Answered: 13 SkyChefs, Incorporated, prepares…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 4,800 of these meals using 1,400 direct labor-hours. The company paid its direct labor workers a total of $18,200 for this work, or $13.00 per hour. According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $12.50 per hour. Required: What is the standard labor-hours allowed (SH) to prepare 4,800 meals? What is the standard labor cost allowed (SH × SR) to prepare 4,800 meals? What is the labor spending variance? What is the labor rate variance and the labor efficiency variance? Note: 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.
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SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 6,600 of these meals using 1,950 direct labor-hours. The company paid its direct labor workers a total of $27,300 for this work, or $14.00 per hour. According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $13.00 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 6,600 meals? 2. What is the standard labor cost allowed (SH x SR) to prepare 6,600 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.) 1. Standard labor-hours allowed 2.…
a company prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon with mixed vegetables. During the most recent week, the company prepared 3,400 of these meals using 1,300 direct labor-hours. The company paid its direct labor workers a total of $16,900 for this work, or $13.00 per hour. According to the standard cost card for this meal, it should require 0.40 direct labor-hour at a cost of $12.00 per hour. What is the labor spending variance? What are the labor rate variance and the labor efficiency variance?
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