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During the most recent month, the following activity was recorded:
a.
Twelve thousand four hundred pounds of material were purchased at a cost of $2.90 per pound.
b.
The company produced only 1,240 units, using 11,160 pounds of material. (The rest of the material purchased remained in raw materials inventory.)
c.
Five hundred and ninety six hours of direct labor time were recorded at a total labor cost of $7,152.
Required:
Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculations.)
Direct materials price variance
Direct materials quantity variance
2. 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 7,200 of these meals using 3,500 direct labor-hours. The company paid these direct labor workers a total of $31,500 for this work, or $9.00 per hour.
According to the standard cost card for this meal, it should require 0.50 direct labor-hours at a cost of $8.50 per hour.
Required:
1.
According to the standards, what direct labor cost should have been incurred to prepare 7,200 meals? How much does this differ from the actual direct labor cost? (Round labor-hours per meal and labor cost per hour to 2 decimal places.)
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