HW-10-4

per hour 27 wnutes 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 Standard Rate Standard Hours Cost 5 5.60 5.2.52 During August 9,455 hours of direct labor time were needed to make 19,500 units of the Jogging Mate. The direct labor cost totaled $52,003 for the month Required: 1. What is the standard labor hours allowed (SH) to makes 19,500 Jogging Mates? 2. What is the standard labor cost allowed (SHSR) to make 19,500 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 54 70 per direct labor-hour, During August, the company incurred $47275 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 effectie, zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard labor hours allowed 2 Standard liber cott allowed 3 Labor spending variance Laborate variance 4 Labor licency variano 5 Variatie overhead rate variance 5 Variable arhead alliancy variance