Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have

image text in transcribed

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 Hours per Hour 27 minutes Standard Rate Standard Cost $2.70 $6.00 During August, 9,265 hours of direct labor time were needed to make 19,100 units of the Jogging Mate. The direct labor cost totaled $53,737 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,100 Jogging Mates? 2. What is the standard labor cost allowed (SH SR) to make 19,100 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 $44,472 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 (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) > Answer is complete but not entirely correct. 1. Standard labor-hours allowed 2. Standard labor cost allowed 8,595 $ 51,570 3. Labor spending variance 4. Labor rate variance 4. Labor efficiency variance 5. Variable overhead rate variance $ 2,689 U $ 1,871 F $ 4,560 U $ 2,087 U 5. Variable overhead efficiency variance $ 3,268 U

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

Financial Accounting Theory and Analysis Text and Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

10th edition

470646284, 978-0470646281

More Books

Students also viewed these Accounting questions

Question

Is the employment-at-will doctrine a good idea? Why or why not?

Answered: 1 week ago

Question

What is an access control list?

Answered: 1 week ago

Question

Explain how managers can deal with employee attitudes.

Answered: 1 week ago

Question

Discuss ways managers can build effective teams.

Answered: 1 week ago

Question

Describe the development of groups and teams.

Answered: 1 week ago