2. Break down the difference in cost from requirement 1-b above into a labour rate variance and a labour efficiency variance. (Indicatethe effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)Labour rate variance1,155 ULabour efficiency variance3. The budgeted variable manufacturing overhead rate is $3.00 per direct labour-hour. During July, the company incurred $11,935 invariable manufacturing overhead cost. Compute the variable overhead spending and efficiency variances for the month. (Indicate theeffect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)Variable overhead spending varianceVariable overhead efficiency variance Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company usesstandards to control its costs. The labour standards that have been set for one speaker are as follows:Standard RateStandardper Hour$19.00Standard HoursCost12 minutes (0.20 hours)$3.80During July, 3,850 hours of direct labour time were recorded to make 18,000 units. The direct labour cost totalled $74,305 for themonth.

Name: 2. Break down the difference in cost from requirement 1-b above into
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Description: 2. Break down the difference in cost from requirement 1-b above into a labour rate variance and a labour efficiency variance. (Indicatethe effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e.,

Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked Labor…

Business

Accounting

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 Rate Standard per Hour $19.00 Standard Hours Cost 12 minutes (0.20 hours) $3.80 During July, 3,850 hours of direct labour time were recorded to make 18,000 units. The direct labour cost totalled $74,305 for the month.

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 Rate Standard per Hour $19.00 Standard Hours Cost 12 minutes (0.20 hours) $3.80 During July, 3,850 hours of direct labour time were recorded to make 18,000 units. The direct labour cost totalled $74,305 for the month.

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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