The management team at Bonita Motors is having a discussion about the standard costs for its...

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The management team at Bonita Motors is having a discussion about the standard costs for its most popular boat motor. For the year just ended, all variable cost variances were slightly favorable. Some on the management team believe the team could be a bit more aggressive on the standard specifications (related to DL and variable-MOH, which is applied using DL hours), while others believe the best approach is to stick with the standards currently in place, shown here: Direct labor Variable-MOH (a) (b) Given the current standards, what is the expected DL and variable-MOH cost per unit? (Round answers to 2 decimal places, e.g. 15.25.) DL cost per unit 3 hours per unit 3 hours per unit Variable-MOH cost per unit eTextbook and Media DL cost per unit @$17.00/DL hour @$8.10/DL hour What would the standards look like for both DL and variable-MOH if management reduces expected DL time per unit by 10%? Specify the new expected DL and variable-MOH cost per unit given this change. Note that the current variable-MOH rate per hour was originally estimated using 9,600 total DL hours. Further, since Bonita Motors is not changing its expected production, it does not expect its total variable-MOH costs to change. (Round answers to 2 decimal places, eg. 15.25.) Variable-MOH cost per unit Attempts: 1 of 3 used The management team at Bonita Motors is having a discussion about the standard costs for its most popular boat motor. For the year just ended, all variable cost variances were slightly favorable. Some on the management team believe the team could be a bit more aggressive on the standard specifications (related to DL and variable-MOH, which is applied using DL hours), while others believe the best approach is to stick with the standards currently in place, shown here: Direct labor Variable-MOH (a) (b) Given the current standards, what is the expected DL and variable-MOH cost per unit? (Round answers to 2 decimal places, e.g. 15.25.) DL cost per unit 3 hours per unit 3 hours per unit Variable-MOH cost per unit eTextbook and Media DL cost per unit @$17.00/DL hour @$8.10/DL hour What would the standards look like for both DL and variable-MOH if management reduces expected DL time per unit by 10%? Specify the new expected DL and variable-MOH cost per unit given this change. Note that the current variable-MOH rate per hour was originally estimated using 9,600 total DL hours. Further, since Bonita Motors is not changing its expected production, it does not expect its total variable-MOH costs to change. (Round answers to 2 decimal places, eg. 15.25.) Variable-MOH cost per unit Attempts: 1 of 3 used

Answer rating: 100% (QA)

a Given the current standards the expected DL cost per unit can be calculated by multiplying the sta... View the full answer