Direct Labor Variances AirMeals, Inc., prepares in-flight meals for a number of major airlines. One of the company’s pro
Posted: Wed May 04, 2022 4:20 pm
Direct Labor Variances AirMeals, Inc., prepares in-flight meals
for a number of major airlines. One of the company’s products is
stuffed cannelloni with roasted pepper sauce, fresh baby corn, and
spring salad. During the most recent week, the company prepared
6,000 of these meals using 1,150 direct labor hours. The company
paid these direct labor workers a total of $11,500 for this work,
or $10 per hour. According to the standard cost card for this meal,
it should require 0.20 direct labor hours at a cost of $9.50 per
hour.
Required 1. Compute the labor rate variance, labor efficiency
variance, and a total variance.
for a number of major airlines. One of the company’s products is
stuffed cannelloni with roasted pepper sauce, fresh baby corn, and
spring salad. During the most recent week, the company prepared
6,000 of these meals using 1,150 direct labor hours. The company
paid these direct labor workers a total of $11,500 for this work,
or $10 per hour. According to the standard cost card for this meal,
it should require 0.20 direct labor hours at a cost of $9.50 per
hour.
Required 1. Compute the labor rate variance, labor efficiency
variance, and a total variance.