## Standard Costs

CH 10 – Standard Costs 11/1/15 9:46 AM http://ezto.mheducation.com/hm.tpx Page 1 of 2 1. value: 1.66 points 1.66 points CH 10 – Standard Costs CH 10 – Standard Costs instructions instructions | help help 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 3,400 of these meals using 1,300 direct labor-hours. The company paid these 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 0.40 direct labor-hours at a cost of \$12.00 per hour. Required: 1. According to the standards, what direct labor cost should have been incurred to prepare 3,400 meals? How much does this differ from the actual direct labor cost? (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance).) Round labor-hours per meal and labor cost per hour to 2 decimal places.) 2. Break down the difference computed in (1) above into a labor rate variance and a labor efficiency variance. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance).) \$ Number of meals prepared Standard direct labor-hours per meal Total direct labor-hours allowed Standard direct labor cost per hour Total standard direct labor cost Actual cost incurred Total standard direct labor cost Total direct labor variance 0 Labor rate variance Labor efficiency variance Managerial Accounting 15e: Fall 2015 Managerial Accounting 15e: Fall 2015 Reda Alrashid Reda Alrashid CH 10 – Standard Costs 11/1/15 9:46 AM http://ezto.mheducation.com/hm.tpx Page 2 of 2 rev: 10_13_2014_QC_56638, 10_24_2014_QC_57357 Hint #1 Check my work ©2015 McGraw-Hill Education. All rights reserved. 2015 McGraw-Hill Education. All rights reserved. Hints References eBook & Resources

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