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hemnisReg : true&returnlM-https;%3A%2F%2Fconrectrnheducation.com%2rpaameeb%2Findee ? Leam G Google G blackboard nku Go User Dashboard New Tab Search NKU Webmal North Connect 10 Homework Help Seve & E Exercise 10-4 Direct Labor and Variable Manufacturing Overhead Variances [LO10-2, LO10-3] 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 During August, 10,240 hours of direct labor time were needed to t make 19,400 units of the Jogging Mate. The direct labor cost totaled $53,248 for the month. 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? variable manufacturing overhead rate is $4.30 per direct labor-hour During August, the company incurred $47104 in cost Compute the vaniable overhead rate and efficiency variances for the month For requirements 3 through 5, indicate the effect of each yerience by selecting F" for favorable. "U for unfevorable, and "None" for no effect (le zero variance Input ell amounts es posidve values. Do not round intermediate calculetions) Prev 1 of 5 Nex ODExplanation / Answer
1) Standard labour hour allowed = 19400*30/60 = 9700 hour
2) Standard labour cost allowed = 9700*5.4 = 52380
3) Labour spending variance = 52380-53248 = 868 U
4) Labour rate variance = (5.4*10240-53248) = 2048 F
Labour efficiency variance = (9700-10240)*5.4 = 2916 U
5) Variable overhead rate variance = (4.3*10240-47104) = 3072 U
Variable overhead efficiency variance = (9700-10240)*4.3 = 2322 U
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