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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
- What is the labor spending variance?
- What are the labor rate variance and the labor efficiency variance?
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