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 6,500 of these meals using 3,200 direct labor-hours. The company paid its direct labor workers a total of $36,800 for this work, or $11.50 per hour. According to the standard cost card for this meal, it should require 0.50 direct labor-hours at a cost of $11.00 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 6,500 meals? 2. What is the standard labor cost allowed (SH x SR) to prepare 6,500 meals? 3. What is the labor spending variance?

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 6,500 of these meals using 3,200 direct labor-hours. The company paid its direct labor workers a total of $36,800 for this work, or $11.50 per hour. According to the standard cost card for this meal, it should require 0.50 direct labor-hours at a cost of $11.00 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 6,500 meals? 2. What is the standard labor cost allowed (SH x SR) to prepare 6,500 meals? 3. What is the labor spending variance?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 26E: Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other...

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