Question

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 4,000 of these meals using 960 direct labor-hours. The company paid these direct labor workers a total of $9,600 for this work, or $10.00 per hour. According to the standard cost card for this meal, it should require 0.25 direct labor-hours at a cost of $9.75 per hour. Required: 1. According to the standards, what direct labor cost should have been incurred to prepare 4,000 meals? How much does this differ from the actual direct labor cost?

Answer 1

The answers are below

Answer 2

$9750

It is $150 more than the actual cost,

Step-by-step 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.