On january 1 revis consulting enters into a contract to complete a cost reduction program for green financial
over a six-month period. green will pay revis $20,000 at the end of each month. if total cost savings reach a
specific target, green will pay an additional $10,000 to revis at the end of the contract, but if total cost savings
fall short, revis will refund $10,000 to green. revis estimates an 80% chance that cost savings will reach
the target and calculates the contract price based on the probability-weighted amounts of future payments to be
received. revis accounts for this arrangement.
required:
prepare the following journal entries for revis:
1. the journal entry on january 31 to record the first month of revenue under the contract.

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 4000 of these meals using 960 direct labor hours. the company paid these direct labor workers a total of $19,200 for this work, or $20.00 per hour. according to standard cost card for this meal, it should require 0.25 direct labour-hours at a cost of $19.75 per hour.1. what is the standard labor-hours allowed (sh) to prepare 4,000 meals? 2. what is the standard labor cost allowed (sh x sr) to prepare 4,000 meals? 3. what is the labor spending variance? 4. what is the labor rate variance and the labor efficiency variance?