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Affordable Electronics Inc. manufactures medium-quality, reasonably priced wreless speakers for home use. The company uses standards to control lts costs. The labour standards that have
Affordable Electronics Inc. manufactures medium-quality, reasonably priced wreless speakers for home use. The company uses standards to control lts costs. The labour standards that have been set for one speaker are as follows: During July, 4,050 hours of direct labour time were recorded to make 19,000 units. The direct labour cost totalled $82,620 for the month. Requirect 1-a. What direct labour cost should have been Incurred to make the 19,000 speakers? (Do not round Intermediate calculations.) 1-b. By how much does direct labour cost differ from the cost that was Incurred? (Indicate the effect of varlance by selecting "F" for favourable, " U " for unfavourable, and "None" for no effect (L.e., zero variance).) 2. Break down the difference in cost from requirement 1-b above Into a labour rate varlance and a labour efficlency varlance. (Indicate the effect of each varlance by selecting "F" for favourable, " U " for unfavourable, and "None" for no effect (Le.., zero varlance).) 3. The budgeted varlable manufacturing overhead rate is $2.00 per direct labour-hour. During July, the company incurred $8,910 in varlable manufacturing overhead cost. Compute the varlable overhead spending and efficlency varlances for the month. (Indicate the effect of each varlance by selecting " F " for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero varlance).)
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