# 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 4000 of these meals using 960 direct labor hours. the company paid these direct labor workers a total of $19,200 for this work, or $20.00 per hour. according to standard cost card for this meal, it should require 0.25 direct labour-hours at a cost of $19.75 per hour.1. what is the standard labor-hours allowed (sh) to prepare 4,000 meals? 2. what is the standard labor cost allowed (sh x sr) to prepare 4,000 meals? 3. what is the labor spending variance? 4. what is the labor rate variance and the labor efficiency variance?

following the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $8.50 per hour.

Explanation:

$9750

It is $150 more than the actual cost,

Explanation:

To solve this problem we first have to calculate the amount of money that it was on the budget to cook these meals, and we will find out by multiplying the number of direct hours of hour by the number of meals and then by the cost of the hours of work:

,25 direct labor hours* 4000 meals* 9,75 dollars per hour= $9750

According to the standards those meals should´ve required 9750 to be done.

The actual cost was 9600 so the standar minus the actual gives a difference of $150 dollars less in the actual cost than in the standard.

1. 2,040 Hours

2. $27,540

3. 460 U

4.Labor rate variance = 1,000 U , Labor efficiency variance = 540 F

Explanation:

1. Standard labor hour allowed = (5,100 * 0.40) = 2,040 Hours

2. Standard labor cost = (2,040 * $13.50) = $27,540

3. Labor spending variance = (Standard cost - actual cost)

Labor spending variance = (27,540 - 28,000)

Labor spending variance = 460 U

4. Labor rate variance = (Standard rate - Actual rate) * Actual hours

Labor rate variance = ($13.50 - $14) * 2000

Labor rate variance = 0.50 * 2,000 U

Labor rate variance = 1,000 U

Labor efficiency variance = (Standard hour - Actual hour) * Standard rate

Labor efficiency variance= (2,040 - 2,000) * $13.50

Labor efficiency variance = 40 * 13.50 F

Labor efficiency variance = 540 F

1. Standard labor-hours allowed 1240

2. Standard labor cost allowed $ 10 540

3. Labor spending variance 260 unfav

4. Labor rate variance $ 600 unfav

Labor efficiency variance $ 340 fav

Explanation:

SkyChefs, Inc.

1.The standard labor-hours allowed (SH) to prepare 6,200 meals

= 0.2 * 6200 = 1240

2. The standard labor cost allowed (SH x SR) to prepare 6,200 meals=

1240 * $ 8.5= $ 10 540

3. Labor Spending Variance= Labor Rate Variance + Labor Efficiency Variance

=600 unfav + 340 unfav = 260 unfavorable

4. Direct Labor Rate variance= (actual hours* actual rate)- (actual hours * standard rate)

Direct Labor Rate variance= (1200 *9.00)- (1200* $ 8.5)= $ 10800- $ 10200 = = $ 600 Unfav

4. Direct labor time variance= (actual hours* standard rate)- (standard hours * standard rate) = ( 1200 * $ 8.5) - ( 1240 * $ 8.5)= 10200- 10540= 340 fav

1.- 4,000 x 0.25= 1,000

2.- 19.75 x 1,000 = 19,750

3.- 240 unfavorable

4.- 790 favorable

Explanation:

DIRECT labor VARIANCES

std rate $19.75

actual rate $20.00

actual hours960

difference $(0.25)

The difference is negative. The cost per hour is greater than expected. The variance is unfavorable.

extra 0.25 x 960 hours = rate variance $(240.00)

std hours1000.00 (1)

actual hours960.00

std rate $19.75

difference40.00

The difference is positive, the company used less hours to complete the meal. the variance is positive.

40 saved hours at $19.75 each = efficiency variance $790.00

Check the calculations below

Explanation:

Labor rate variance = actual quantity*actual rate - actual quantity*standard rate

actual quantity = 3500 direct labor hours. actual rate = $9 per hour. standard rate = $8.50 per hour

labor rate variance = 3500 hours*$9 per hour - 3500 hours*$8.50 per hour

= $1,750 (Unfavorable)

Labor efficiency variance = actual hours*standard rate - standard hours*standard rate

standard hours = 7200 meals*0.50 direct labor hour per meal = 3600 hours

labor efficiency variance = 3500 hours*$8.50 per hour - 3600 hours*$8.50 per hour

= - $850 (favorable)

Complete solution contaning all calculations are given below in the table attached as image:

Instructions are listed below.

Explanation:

Giving the following information:

During the most recent week, the company prepared 6,700 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 0.20 direct labor-hours for $12.50 per hour.

1) Standard labor hour= 0,20* 6,700= 1,340 hours

2) Standard cost= 1,340*12.5= $16,750

3) Labor spending variance= 16,750 - 16,900= 150 unfavorable

4) Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (1,340 - 1,300)*12.5= 500 favorable

Direct labor price variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor price variance= (12.5 - 13)*1,300= 650 unfavorable