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 12 minutes (0.20 hours) Standard Rate per Hour $12.00 Standard Cost $2.40 During July, 2,550 hours of direct labour time were recorded to make 12,000 units. The direct labour cost totalled $29,580 for the month. Required: 1-a. What direct labour cost should have been incurred to make the 12,000 speakers? (Do not round intermediate calculations.) Direct labour cost 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).) Total 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 12 minutes (0.20 hours) Standard Rate per Hour $12.00 Standard Cost $2.40 During July, 2,550 hours of direct labour time were recorded to make 12,000 units. The direct labour cost totalled $29,580 for the month. Required: 1-a. What direct labour cost should have been incurred to make the 12,000 speakers? (Do not round intermediate calculations.) Direct labour cost 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).) Total variance
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Transcribed Image Text: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
12 minutes (0.20 hours)
Standard Rate
per Hour
$12.00
Standard
Cost
$2.40
During July, 2,550 hours of direct labour time were recorded to make 12,000 units. The direct labour cost totalled $29,580 for the
month.
Required:
1-a. What direct labour cost should have been incurred to make the 12,000 speakers? (Do not round intermediate calculations.)
Direct labour cost
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).)
Total variance
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