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 5,100 of these meals using 2,000 direct labor-hours. The company paid its direct labor workers a total of $28,000 for this work, or $14.00 per hour.

According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $13.50 per hour.

Answer 1

SkyChefs, Inc. is a meal preparation company for airlines, which recently paid more in labor costs per hour than their standard cost card suggests. comparable companies like Costco take a different approach to labor, offering higher wages and better benefits. the question involves labor costs, efficiency, and comparisons with industry practices.

Step-by-step explanation:

The student's question pertains to SkyChefs, Inc., a company known for preparing in-flight meals for major airlines. This specific case is focused on the labor costs involved in preparing grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the latest period, SkyChefs prepared 5,100 of these meals using 2,000 direct labor-hours, and employees were paid a total of $28,000, equating to $14.00 per hour. However, according to the standard cost card, it should have taken 0.40 direct labor-hours at $13.50 per hour to prepare one meal.

Comparatively, it's mentioned that companies like Costco combat the effects of McDonaldization by offering high wages and benefits to their employees, suggesting a different approach to employee compensation and labor utilization. Additionally, information about the salmon market is provided, but does not directly relate to SkyChefs' labor cost scenario. Lastly, generic labor and machinery cost calculations are presented without context to SkyChefs' operations.