Question

8 Exerclse 10-2 Direct Labor Varlances [LO10-2] 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 7.200 of these meals using 2.800 direct labor-hours. The company paid its direct labor workers a total of $22.400 for this work, or $8.00 per hour. 12.5 points According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $7.50 per hour. eBook Required: 1. What is the standard labor-hours allowed (SH) to prepare 7.200 meals? 2 What is the standard labor cost allowed (SHx SR) to prepare 7,200 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requlrements 3 and 4, Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as posltlve values. Do no round Intermedlate calculatlons.) Print References 1 Standard labor-hours allowed 2. Standard labor cost allowed 3. Labor spending variance Labor rate variance Labor efficiency variance

Answer 1

meals 1,200 x o.uo = 2,880 meals ク houss allouoad X Slandourd dinece labas cost bes hou ニキ21,600 3. ohat is the -(SHX S R) Labas spending vagu anae = (AH X AR) $ 22,400- 21,600 = 2,800 hours (48. oo pes, hous-$チ50 hes' hour) =tz, 50 pos h0um (2,800 hou us-2,880 hours) =f 600 F