Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards that have

image text in transcribed
image text in transcribed
Affordable Electronics Inc. manufactures medium-quality, 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 18 minutes (0.30 hours) Standard Rate per Hour $16.00 Standard Cost $4.80 During July 8,050 hours of direct labour time were recorded to make 26,000 units. The direct labour cost totalled $132,020 for the month Required, 1-a. What direct labour cost should have been incurred to make the 26,000 speakers? (Do not round intermediate calculations.) Direct labour cost 1.6. By how much does direct labour cost differ from the cost that was incurred? (Indicate the effect of variance by selecting "P" for favourable, "U" for unfavourable, and "None" for no effect (le, zero variance)) Total Vitance 2. Break down the difference in cost from requirement 1-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 effectie, zero variance).) Labour rate vanance 2. Break down the difference in cost from requirement 1-5 above into a labour rate variance and a labour efficiency variance (Indicate the effect of each variance by selecting "P" for favourable. "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance 3. The budgeted variable manufacturing overhead rate is $3.00 per direct labour-hour. During July, the company incurred $24.955 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)) Variable overhead spending variance Variable overhead efficiency variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Facilities Managers Reference Management Planning Building Audits Estimating

Authors: Harvey H. Kaiser

1st Edition

0876291426, 978-0876291429

More Books

Students also viewed these Accounting questions