Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards that have been set for one speaker are as follows: Standard Hours 18 minutes (0.30 hours) During July, 7,150 hours of direct labour time were recorded to make 23,000 units. The direct labour cost totalled $91,520 for the month. Direct labour cost Required: 1-a. What direct labour cost should have been incurred to make the 23,000 speakers? (Do not round intermediate calculations.) Standard Rate per Hour $12.00 Total variance $ Standard Cost $3.60 Labour rate variance Labour efficiency variance 79,200 1-b. By how much does direct labour cost differ from the cost that was incurred? (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 2. Break down the difference in cost from requirement 1-b above into a labour rate variance and a 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).)

Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards that have been set for one speaker are as follows: Standard Hours 18 minutes (0.30 hours) During July, 7,150 hours of direct labour time were recorded to make 23,000 units. The direct labour cost totalled $91,520 for the month. Direct labour cost Required: 1-a. What direct labour cost should have been incurred to make the 23,000 speakers? (Do not round intermediate calculations.) Standard Rate per Hour $12.00 Total variance $ Standard Cost $3.60 Labour rate variance Labour efficiency variance 79,200 1-b. By how much does direct labour cost differ from the cost that was incurred? (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 2. Break down the difference in cost from requirement 1-b above into a labour rate variance and a 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).)

Name: answer in text form please (without image) Affordable Electronics Inc.
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Description: answer in text form please (without image) Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. Thecompany uses standards to control its costs. The labour standards that have been set for one spea

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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