Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to...
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Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours. 27 minutes Standard Rate Standard per Hour $6.40 Cost $2.88 During August, 9,450 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $59,535 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,400 Jogging Mates? 2. What is the standard labor cost allowed (SH SR) to make 19,400 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $410 per direct labor-hour. During August, the company incurred $45,360 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Do not round intermedite calculations.) 1. Standard labor-hours allowed 2 Standard labor cost allowed 3. Labor spending variance $ 55,872 3,663 U 4. Labor rate variance 945F 4,608 U 6,615 U 2.952 U 4. Labor efficiency variance 5 Variable overhead rate variance 5. Vanable overhead efficiency variance Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours. 27 minutes Standard Rate Standard per Hour $6.40 Cost $2.88 During August, 9,450 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $59,535 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,400 Jogging Mates? 2. What is the standard labor cost allowed (SH SR) to make 19,400 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $410 per direct labor-hour. During August, the company incurred $45,360 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Do not round intermedite calculations.) 1. Standard labor-hours allowed 2 Standard labor cost allowed 3. Labor spending variance $ 55,872 3,663 U 4. Labor rate variance 945F 4,608 U 6,615 U 2.952 U 4. Labor efficiency variance 5 Variable overhead rate variance 5. Vanable overhead efficiency variance
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Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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