Question: Please help find whats marked wrong. Thank you Exercise 10-4 Direct Labor and Variable Manufacturing Overhead Variances [L010-2, LO010-3] Erie Company manufactures a small mp3

Please help find whats marked wrong. Thank you

Please help find whats marked wrong. Thank you Exercise 10-4 Direct Laborand Variable Manufacturing Overhead Variances [L010-2, LO010-3] Erie Company manufactures a small

Exercise 10-4 Direct Labor and Variable Manufacturing Overhead Variances [L010-2, LO010-3] Erie Company manufactures a small mp3 player called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate mp3 player are as follows Standard Hours 24 minutes Standard Rate per Hour $6.20 Standard Cost $2.48 During August, 8,330 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $49,980 for the month Required 1. According to the standards, what direct labor cost should have been incurred to make 19,400 units of the Jogging Mate? By how much does this differ from the cost that was incurred? (Round Standard labor time per unit to 2 decimal places.) 19,400 Number of units manufactured Standard labor time per unit Total standard hours of labor time allowed Standard direct labor rate per hour Total standard direct labor cost Actual direct labor cost Standard direct labor cost Total variance-unfavorable 0.00X $ 7,760.00X 0 $ 49,980 $49,980 2. Break down the difference in cost from (1) above into a labor rate variance and a labor efficiency variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculations.) 1,666'/ F 3,534'/ U Labor rate variance Labor efficiency variance

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!