Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help and show work so I can see each step Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company

Please help and show work so I can see each step image text in transcribed

Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards that have been set for one speaker are as follows: During July, 3,150 hours of direct labour time were recorded to make 15,000 units. The direct labour cost totalled $48,195 for the month. Required. 1-a. What direct labour cost should have been incurred to make the 15,000 speakers? (Do not round intermediate calculations.) 1-b. By how much does direct labour cost differ from the cost that was incurred? (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 2. Break down the difference in cost from requirement 1-b above into a labour rate variance and a labour efficiency variance. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 3. The budgeted variable manufacturing overhead rate is $2.00 per direct labour-hour. During July, the company incurred $8,190 in variable manufacturing overhead cost. Compute the variable overhead spending and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero 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

Government Auditing Standards 2011 Revision

Authors: U. S. Government Accountability Office, Comptroller General Of The United States

1st Edition

1482311372, 978-1482311372

More Books

Students also viewed these Accounting questions