Erie Co. manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows. Standard Hours 18 minutes Standard Rate per Hour Standard Cost $ 17.00 $5.10 During August, 5,750 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled $102,350 for the month. What is the standard labor cost allowed to make 20,000 Jogging Mates?

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Chapter6: Activity-based, Variable, And Absorption Costing
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Erie Co. manufactures a mobile fitness device called the Jogging Mate.
The company uses standards to control its costs. The labor standards
that have been set for one Jogging Mate are as follows.
Standard Hours
18 minutes
Standard Rate per Hour
Standard Cost
$ 17.00
$5.10
During August, 5,750 hours of direct labor time were needed to make
20,000 units of the Jogging Mate. The direct labor cost totaled
$102,350 for the month.
What is the standard labor cost allowed to make 20,000 Jogging
Mates?
Transcribed Image Text:Erie Co. manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows. Standard Hours 18 minutes Standard Rate per Hour Standard Cost $ 17.00 $5.10 During August, 5,750 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled $102,350 for the month. What is the standard labor cost allowed to make 20,000 Jogging Mates?
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