Question: need help in working through this practice problem , thank you!!! Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses
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 30 minutes Standard Rate per Hour $6.20 Standard Cost $3.10 During August, 10.410 hours of direct labor time were needed to make 19.700 units of the Jogging Mate. The direct labor cost totaled $63,501 for the month Required: 1. What is the standard labor hours allowed (SH) to makes 19,700 Jogging Mates? 2. What is the standard tabor cost allowed (SH SR) to make 19,700 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 $49.968 10 variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month (For requirements through 5. Indicate the effect of each variance by splecting "F" for favorable, "U" for unfavorable, and "None" for no effect (le, zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1 Standard labor hours allowed 2 Standard labor cost dlowed 3 Labor spending variance 4 Laborale vanno Labor ethiciency variance 5 Variable overhead rate vanance
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