Chapter 10 Homework Saved 2 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 Rate 10 Standard Standard Hours r points 27 minutes $6.40 $2.88 Skipped During August, 9,735 hours of direct labor time were needed to make 19,900 units of the Jogging Mate. The direct labor cost totaled $61,331 for the month. eBook Required: 1 What is the standard labor-hours allowed (SH) to makes 19,900 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,900 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 $4.30 per direct labor-hour. During August, the company incurred $44,781 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. Hint Print (For requirements 3 through 5, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) References Standard labor-hours allowed 1 Standard labor cost allowed 2 Labor spending variance Labor rate variance 4 Labor efficiency variance Variable overhead rate variance 5 Variable overhead efficiency variance Chapter 10 Homework Saved 1 Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below Standard 10 Quantity or Standard Price Standard points Hours or Rate Cost 2.50 per pound $12.50 per hour Direct materials Direct labor 6.70 pounds 0.50 hours $16.75 Skipped 6.25 During the most recent month, the following activity was recorded: eBook a. Thirteen thousand pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,300 units, using 11,700 pounds of material. (The rest of the material purchased remained in raw materlals inventory.) C. 750 hours of direct labor time were recorded at a total labor cost of $9,000. Print Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) References Materials price variance Materials quantity variance