Exercise Algo Direct Labor Variances LO
SkyChefs, Incorporated, prepares inflight 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 of these meals
using direct laborhours. The company paid its direct labor workers a total of $ for this work, or $ per hour.
According to the standard cost card for this meal, it should require direct laborhours at a cost of $ per hour.
Required:
What is the standard laborhours allowed SH to prepare meals?
What is the standard labor cost allowed to prepare meals?
What is the labor spending variance?
What is the labor rate variance and the labor efficiency variance?
For requirements and indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for
no effect ie zero variance Input all amounts as positive values. Do not round intermediate calculations.
