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Affordable Electronics Inc. manufactures medium - quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards
Affordable Electronics Inc. manufactures mediumquality, reasonably priced wireless speakers for home use. The company uses
standards to control its costs. The labour standards that have been set for one speaker are as follows:Standard Hours Standard Rate
per Hour Standard
Cost
minutes hours $ $
During July, hours of direct labour time were recorded to make units. The direct labour cost totalled $ for theBreak down the difference in cost from requirement b above into a labour rate variance and a labour efficiency variance. Indicate
the effect of each variance by selecting F for favourable, U for unfavourable, and "None" for no effect ie zero variance
The budgeted variable manufacturing overhead rate is $ per direct labourhour. During July, the company incurred $ in
variable manufacturing overhead cost. Compute the variable overhead spending and efficiency variances for the month. Indicate the
effect of each variance by selecting F for favourable, U for unfavourable, and "None" for no effect ie zero variance
month.
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