Skylnc provides in-flight meals for a number of major airlines. One of the company's products is stuffed cannelloni with roasted pepper sauce, fresh baby corn, and spring salad. During the most recent week, the company prepared 6,000 of these meals, using 1,150 direct labour- hours. The company paid these direct labour workers a total of $11,500 for this work, or $10 per hour. According to the standard cost card for this meal, it should require 0.20 direct labour-hours at a cost of $9.50 per hour. The standard for each meal is to use one pound of raw material at a standard cost of $6 per pound. During the week, we purchased 10,000 pounds of material at a cost of $58,000. Production used 5,950 pounds during the week. Required: 1 Calculate the direct labour variances. 2. Calculate the direct materials variances.

Skylnc provides in-flight meals for a number of major airlines. One of the company's products is stuffed cannelloni with roasted pepper sauce, fresh baby corn, and spring salad. During the most recent week, the company prepared 6,000 of these meals, using 1,150 direct labour- hours. The company paid these direct labour workers a total of $11,500 for this work, or $10 per hour. According to the standard cost card for this meal, it should require 0.20 direct labour-hours at a cost of $9.50 per hour. The standard for each meal is to use one pound of raw material at a standard cost of $6 per pound. During the week, we purchased 10,000 pounds of material at a cost of $58,000. Production used 5,950 pounds during the week. Required: 1 Calculate the direct labour variances. 2. Calculate the direct materials variances.

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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