Erie Company manufactures a mobile fitness device called the JoggingMate. The company uses standards to control its costs. The laborstandards that have been set for one Jogging Mate are as follows:Standard Hours18 minutesStandard Rate per HourStandard Cost$ 17$ 5.10During August, 5,750 hours of direct labor time were needed to make20,000 units of the Jogging Mate. The direct labor cost totaled$102,350 for the month.Required:1. What are the standard labor hours allowed (SH) to make 20,000Jogging Mates?2. What is the standard labor cost allowed (SH * SR) to make 20,000Jogging Mates?3. What is the labor spending variance?4. What is the labor rate variance and the labor efficiency variance?

Part 1: Standard Labor Hours Allowed (SH)1 Jogging mate requires 18 mins standard hours to…

Answered: Erie Company manufactures a mobile…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 4EA: Cozy, Inc., manufactures small and large blankets. It estimates $350,000 in overhead during the...

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Erie Company 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: StandardHours Standard Rateper Hour StandardCost 24 minutes $6.00 $2.40 During August, 8,240 hours of direct labor time were needed to make 19,300 units of the Jogging Mate. The direct labor cost totaled $48,616 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,300 Jogging Mates? 2. What is the standard labor cost allowed (SH × SR) to make 19,300 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.30 per direct labor-hour. During August, the company incurred $42,848 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. For requirements 3…
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Erie Company 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: StandardHours Standard Rateper Hour StandardCost 24 minutes $6.00 $2.40 During August, 8,240 hours of direct labor time were needed to make 19,300 units of the Jogging Mate. The direct labor cost totaled $48,616 for the month. requirements needed: 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.30 per direct labor-hour. During August, the company incurred $42,848 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not…
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company's labor standards for one Jogging Mate are as follows: Standard Hours 24 minutes Standard Rate per Hour $ 6.40 Standard Cost $ 2.56 During August, 8,530 hours of direct labor time were needed to make 19,700 units of the Jogging Mate. The direct labor cost totaled $53,739 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,700 Jogging Mates? 2. What is the standard labor cost allowed (SH × SR) to make 19,700 Jogging Mates? 3. What is the labor spending variance? 4. What are the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.10 per direct labor-hour. During August, the company incurred $40,944 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. Note: For requirements 3 through 5, indicate the effect of each variance by selecting "F" for…
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Erie Company 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 27 minutes Standard Rate per Hour Standard Cost $2.79 $6.20 During August, 9,320 hours of direct labor time were needed to make 19,000 units of the Jogging Mate. The direct labor cost totaled $55,920 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,000 Jogging Mates? 2. What is the standard labor cost allowed (SH × SR) to make 19,000 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $44,736 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate…

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