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2. Calculate the labour rate variance and labour efficiency variance? (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance 3. Compute the variable overhead spending and efficiency variances for the month, (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efficiency variance

2. Calculate the labour rate variance and labour efficiency variance? (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance 3. Compute the variable overhead spending and efficiency variances for the month, (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efficiency variance

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Calculate the labour rate variance and labour efficiency variance? (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance 3. Compute the variable overhead spending and efficiency variances for the month, (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efficiency variance 4. Suppose the static budget volume is 15,000 players-this is the denominator volume. Compute the volume variance for fixed overhead cost. (Round intermediate calculations to the nearest whole dollar amount. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Volume variance 5. Suppose that the static budget volume is also the normal volume and that the budgeted variable overhead cost in the static budget is $25,500, Given the standard cost card data in the question, calculate the under- or overapplied fixed overhead for August. (Do not round intermediate calculations.) Fixed overhead
Transcribed Image Text:2. Calculate the labour rate variance and labour efficiency variance? (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance 3. Compute the variable overhead spending and efficiency variances for the month, (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efficiency variance 4. Suppose the static budget volume is 15,000 players-this is the denominator volume. Compute the volume variance for fixed overhead cost. (Round intermediate calculations to the nearest whole dollar amount. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Volume variance 5. Suppose that the static budget volume is also the normal volume and that the budgeted variable overhead cost in the static budget is $25,500, Given the standard cost card data in the question, calculate the under- or overapplied fixed overhead for August. (Do not round intermediate calculations.) Fixed overhead
Erie Company manufactures an MP3 player called the Jogging Mate. The company uses standards to control its costs. The labour and variable overhead standards that have been set for one Jogging Mate MP3 player are as follows: Direct labour Variable overhead Standard Hours 18 minutes 18 minutes Direct labour cost Standard Rate per Hour $9.00 $5.00 Budgeted fixed overhead was estimated to be $15,300 per month. Fixed overhead cost is applied using direct labour-hours. During August, 4,550 hours of direct labour time was recorded in the manufacture of 16,000 units of the Jogging Mate. The direct labour cost totalled $49,100 for the month. Actual variable overhead and fixed overhead costs were $17,290 and $25,600, respectively. Standard Cost $2.70 $ 1.50 Required: 1-a. What direct labour cost should have been incurred in the manufacture of the 16,000 units of the Jogging Mate? (Do not round intermediate calculations.) Variance 1-b. Calculate the total direct labor cost variance? (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (ie, zero variance).)
Transcribed Image Text:Erie Company manufactures an MP3 player called the Jogging Mate. The company uses standards to control its costs. The labour and variable overhead standards that have been set for one Jogging Mate MP3 player are as follows: Direct labour Variable overhead Standard Hours 18 minutes 18 minutes Direct labour cost Standard Rate per Hour $9.00 $5.00 Budgeted fixed overhead was estimated to be $15,300 per month. Fixed overhead cost is applied using direct labour-hours. During August, 4,550 hours of direct labour time was recorded in the manufacture of 16,000 units of the Jogging Mate. The direct labour cost totalled $49,100 for the month. Actual variable overhead and fixed overhead costs were $17,290 and $25,600, respectively. Standard Cost $2.70 $ 1.50 Required: 1-a. What direct labour cost should have been incurred in the manufacture of the 16,000 units of the Jogging Mate? (Do not round intermediate calculations.) Variance 1-b. Calculate the total direct labor cost variance? (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (ie, zero variance).)
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