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ASAP, please. The management team at Bramble Motors is having a discussion about the standard costs for its most popular boat motor. For the year
ASAP, please.
The management team at Bramble Motors is having a discussion about the standard costs for its most popular boat motor. For the year just ended, all variable cost variances were slightly favorable. Some on the management team believe the team could be a bit more aggressive on the standard specifications (related to DL and variable-MOH, which is applied using DL hours), while others believe the best approach is to stick with the standards currently in place, shown here: Direct labor 2 hours perunit@@ \$19.00/DLhour Variable-MOH 2 hours per unit @ \$8.10/DLhour (b) Your answer is partially correct. What would the standards look like for both DL and variable-MOH if management reduces expected DL time per unit by 10% ? Specify the new expected DL and variable-MOH cost per unit given this change. Note that the current variable-MOH rate per hour was originally estimated using 6,600 total DL hours. Further, since Bramble Motors is not changing its expected production, it does not expect its total variable- MOH costs to change. (Round answers to 2 decimal places, eg. 15.25.) DL cost per unit Variable-MOH cost per unitStep by Step Solution
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