a company manufactures a mobile fitness device called the Jogging Mate. The company's labor standards for one Jogging Mate are as follows: Standard Hours Standard Rate per Hour Standard Cost 27 minutes $ 6.00 $ 2.70 During August, 9,420 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $54,636 for the month. Required: What are the labor rate variance and the labor efficiency variance? The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $47,100 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
a company manufactures a mobile fitness device called the Jogging Mate. The company's labor standards for one Jogging Mate are as follows: Standard Hours Standard Rate per Hour Standard Cost 27 minutes $ 6.00 $ 2.70 During August, 9,420 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $54,636 for the month. Required: What are the labor rate variance and the labor efficiency variance? The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $47,100 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
a company manufactures a mobile fitness device called the Jogging Mate. The company's labor standards for one Jogging Mate are as follows:
| Standard Hours | Standard Rate per Hour | |
|---|---|---|
| 27 minutes | $ 6.00 | $ 2.70 |
During August, 9,420 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $54,636 for the month.
Required:
- What are the labor rate variance and the labor efficiency variance?
- The budgeted variable manufacturing
overhead rate is $4.50 per direct labor-hour. During August, the company incurred $47,100 in variablemanufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
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