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Exercise 9-10 (Algo) Direct Labor and Variable Manufacturing Overhead Variances [LO9-5, LO9-6] Erie Company manufactures a mobile fitness device called the Jogging Mate. The company

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Exercise 9-10 (Algo) Direct Labor and Variable Manufacturing Overhead Variances [LO9-5, LO9-6] 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: During August, 8.520 hours of direct labor time were needed to make 19,900 units of the Jogging Mate. The direct labor cost totaled $46,008 for the month. 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 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 $4.50 per direct labor-hour. During August, the company incurred $42,600 in variable manufacturing overhead cost Compute the variable overhead rate and efficlency 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.) Exercise 9-11 (Algo) Working Backwards from Labor Variances [LO9-5] The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below: The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 54 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week: 2. Determine the actual hourly rate of pay for tune-ups last woek (Round your answer to 2 decimal places.)

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