Exercise 9-5 (Algo) Direct Labor Variances [LO9-5] SkyChefs, Incorporated, prepares in-filght meals for a number...
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Exercise 9-5 (Algo) Direct Labor Variances [LO9-5] SkyChefs, Incorporated, prepares in-filght 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 comparyy prepared 6,500 of these meals using 3,200 direct labor-hours. The company paid ifs 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 (SHSR ) to prepare 6,500 meals? 3. What is the labor spending variance? 4. What is the fabor rate vartance and the fabor effliency varlance? (For requirements 3 and 4 , indicate the effect of eoch variance by selecting "F" for favorable, " U " for unfavorable, and "None" for no effect (i.e., zero variance), Input all amounts os positive volues. Do not round intermediate calculations.)
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