Norweigian Cruise Line (NCL) hires gourmet chefs for their signature Alaska cruises. NCL has a direct...

Norweigian Cruise Line (NCL) hires gourmet chefs for their signature Alaska cruises. NCL has a direct labor standard of 2 hours per meal cooked. Each employee has a standard wage rate of $21.50 per hour. During August, NCL paid $95,634 to employees for 4,620 hours worked. 2,560 meals were cooked during August. What is the flexible budget amount for direct labor?

Expert Solution


	Flexible budget amount means Standard labor cost for the actual output

	Here output is 2,560 meals

	Standard cost for one meal is 2hours and cost of $21.5 per hour, So standard cost for a meal is 21.5*2 = $43

	So, standard cost for 2560 meals is
	=2560 meals * $43
	$ 110,080

So, flexible budget amount for direct labor is $110,080

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ekkarill92 answered 1 year ago

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