Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 Hours. 27 minutes Standard Rate Standard per Hour $6.40 Cost $2.88 During August, 9,450 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $59,535 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 (SH 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 $410 per direct labor-hour. During August, the company incurred $45,360 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 (l.e., zero variance). Input all amounts as positive values. Do not round intermedite calculations.) 1. Standard labor-hours allowed 2 Standard labor cost allowed 3. Labor spending variance $ 55,872 3,663 U 4. Labor rate variance 945F 4,608 U 6,615 U 2.952 U 4. Labor efficiency variance 5 Variable overhead rate variance 5. Vanable overhead efficiency variance 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 Hours. 27 minutes Standard Rate Standard per Hour $6.40 Cost $2.88 During August, 9,450 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $59,535 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 (SH 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 $410 per direct labor-hour. During August, the company incurred $45,360 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 (l.e., zero variance). Input all amounts as positive values. Do not round intermedite calculations.) 1. Standard labor-hours allowed 2 Standard labor cost allowed 3. Labor spending variance $ 55,872 3,663 U 4. Labor rate variance 945F 4,608 U 6,615 U 2.952 U 4. Labor efficiency variance 5 Variable overhead rate variance 5. Vanable overhead efficiency variance
Expert Answer:
Answer rating: 100% (QA)
1 standard hours allowed actual units standard labor hour per unit ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
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:...
-
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:...
-
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:...
-
28. The amount of time spent by an employee in the factory is usually recorded on: a. time tickets b. job order cost sheets c. employees' earnings records d. statement of owners'equity 29. The entry...
-
Discounted cash flow analysis techniques are used by managers to understand the impact of investment decisions in terms of todays dollars. Two common techniques that use discounted cash flows are net...
-
Show that if B is m x n, then B T B is positive semidefinite; and if B is n x n and invertible, then B T B is positive definite.
-
Show that the circulation of a free vortex for any closed path that encloses the origin is \(\Gamma\).
-
What are the benefits, costs, and risks of an aggressive funding strategy and of a conservative funding strategy? Under which strategy is the borrowing often in excess of the actual need?
-
Cobalt Industries produces widgets. The 2023 budget and actuals were as follows: Budget Actual Production and sales (units) 6,000 5,400 Sales Revenue $ 1,380,000 $ 1,296,000 Variable costs $ 660,000...
-
Laurens Beauty Boutique has experienced the following weekly sales: Forecast sales for week 6 using the nave method, a simple average, and a three-period moving average. Week 1 2 3 4 5 Sales 420 382...
-
Janes utility function is U(x, y) = x^1/2y^1/2. Her income is $120. The price of x is 1 and the price of y is 2. How many units of x and y will Jane demand to maximize her utility? Please use the...
-
What is a KolmogorovSmirnoff statistic? How is it used?
-
Who are the key team members to include in your analytics team?
-
What is a receiver operating characteristics curve? How is it used?
-
What is linear regression? What kind of variable are you trying to predict?
-
How can you assess whether your analytical infrastructure is nearing capacity?
-
A local bakery sells the freshest bread in town. In fact, 65% of customers who come into this store buy bread. What is the probability that at least 3 customers out of the first 6 will buy bread? 2...
-
Should U.S. antidumping laws be stated in terms of average total costs or average variable costs?
-
A CVP graph such as the one shown below is a useful technique for showing relationships among an organizations costs, volume, and profits. Required: 1. Identify the numbered components in the CVP...
-
Lasser Company plans to produce 10,000 units next period at a denominator activity of 30,000 direct labor-hours. The direct labor wage rate is $12 per hour. The company's standards allow 2.5 yards of...
-
Aldean Company wants to use absorption cost-plus pricing to set the selling price on a new product. The company plans to invest $200,000 in operating assets to produce and sell 16,000 units. Its...
-
What is the direction of the magnetic field at a point vertically (a) above (b) below segment 1 in Figure 28.5? Figure 28.5 Mapping the magnetic field of a current loop. The magnetic field...
-
Make a sketch showing the directions of the magnetic forces exerted on each other by (a) an electron moving in the same direction as the current through a wire, (b) a moving charged particle and a...
-
As the current loop in Figure 28.10 rotates over the first \(90^{\circ}\), do the magnitudes of (a) the magnetic force exerted on the horizontal sides and (b) the torque caused by these forces...
Study smarter with the SolutionInn App