Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
Erle 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 Standard Rate Standard per Hour Cost $5.60 $2.52 27 minutes During August 9,290 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $50,166 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 (SHX 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 $4.30 per direct labor-hour. During August, the company Incurred $46,450 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.) 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 Variable overhead efficiency variance

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

Internal Audit Quality Developing A Quality Assurance And Improvement Program

Authors: Sally-Anne Pitt

1st Edition

1118715519, 978-1118715512

More Books

Students also viewed these Accounting questions