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 Mote are as follows: Standard Hours 30 minutes standard Rate per Hour $5.40 Standard Cost $2.70 During August 10,430 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $55,279 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,400 Jogging Mates? 2. What is the standard labor cost allowed (SH - SR) to make 19,400 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 50 per direct labor-hour During August, the company incurred $50,064 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month (For requirements 3 through 5, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts os positive values. Do not round intermediate calculations.) 1 Standard labor hours allowed 2 Standard labor cost allowed 3. Labor spending variance 4 Labor rate variance Labor efficiency variance 5 Variable overhead rate variance Vanable overhead efficiency variance Exercise 10-7 (Algo) Direct Materials Variances [LO10-1] 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. Direct materials Direct labor Standard Quantity or Hours 5.60 pounds e.4 hours Standard Price or Rate $3.ee per pound $7.00 per hour Standard Cost $16.80 $ 2.se During the most recent month, the following activity was recorded: a. Ten thousand eight hundred pounds of material were purchased at a cost of $290 per pound. b. The company produced only 1,080 units, using 9,720 pounds of material. (The rest of the material purchased femained in raw materials inventory.) c 532 hours of direct labor time were recorded at a total tabor cost of $6,384. Required: Compute the materials price and quantity variances for the month (Indicate the effect of each variance by selecting " for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round Entermediate calculations.) Materials price variance Materials quantity variance
