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 been

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 HoursStandard Rate per HourStandard Cost
27 minutes$5.80$2.61

During August, 9,440 hours of direct labor time were needed to make 19,800 units of the Jogging Mate. The direct labor cost totaled $53,808 for the month.

Required:

1. What is the standard labor-hours allowed (SH) to makes 19,800 Jogging Mates?

2. What is the standard labor cost allowed (SH × SR) to make 19,800 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 $50,976 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.

Step by Step Solution

3.43 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

Question Standard hours Standard Rate Explanation 27 minutes Requirement 1 580 No of Jogging mates S... 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

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

More Books

Students also viewed these Accounting questions

Question

29. What is the mean life span of an olfactory receptor?

Answered: 1 week ago