Banner Food Processing prepares ready-to-eat meals. At Banner, the cost of prepared meals has a fixed component and a variable component related to the number of meals prepared. The cost and number of meals prepared at the kitchen for the past seven months are provided below. Month Number of Prepared Meals Cost of Meals 781 $3,538 418 $1,984 279 $1,389 700 $3,191 580 $2,677 713 $3,247 1,264 $5,604 June July August September October November December Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. Using the high-low method, What would be the expected cost of meals prepared for a month in which 571 meals are prepared? Variable Cost per Unit: $ Fixed Cost: $ Total Cost Incurred: $ Check

Banner Food Processing prepares ready-to-eat meals. At Banner, the cost of prepared meals has a fixed component and a variable component related to the number of meals prepared. The cost and number of meals prepared at the kitchen for the past seven months are provided below. Month Number of Prepared Meals Cost of Meals 781 $3,538 418 $1,984 279 $1,389 700 $3,191 580 $2,677 713 $3,247 1,264 $5,604 June July August September October November December Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. Using the high-low method, What would be the expected cost of meals prepared for a month in which 571 meals are prepared? Variable Cost per Unit: $ Fixed Cost: $ Total Cost Incurred: $ Check

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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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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