mpany Dile ithess device he 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 Standard Rate Standard per Hour $6.40 Cost $2.88 Hours 27 minutes During August, 9,800 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled $61,740 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 20,000 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 20,000 Jogging Mates? 3. What is the labor spending variance? 4 What ic the labor rate variance and the labor efficiency variance?

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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
Standard Rate
Standard
per Hour
$6.40
Hours
Cost
27 minutes
$2.88
During August, 9,800 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost
totaled $61,740 for the month.
Required:
1. What is the standard labor-hours allowed (SH) to makes 20,000 Jogging Mates?
2. What is the standard labor cost allowed (SH × SR) to make 20,000 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 $4.30 per direct labor-hour. During August, the company incurred
$45,080 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 round intermediate calculations.)
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Transcribed Image Text: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 Standard Rate Standard per Hour $6.40 Hours Cost 27 minutes $2.88 During August, 9,800 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled $61,740 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 20,000 Jogging Mates? 2. What is the standard labor cost allowed (SH × SR) to make 20,000 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 $4.30 per direct labor-hour. During August, the company incurred $45,080 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 round intermediate calculations.) < Prev Next > 4 of 8 search T9144 40 4+
5. The budgeted variable manufacturing overhead rate is $4.30 per direct labor-hour. During August, the company incurred
$45,080 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 round intermediate calculations.)
1.
Standard labor-hours allowed
2
Standard labor cost allowed
3.
Labor spending variance
4.
Labor rate variance
nces
Labor efficiency variance
5. Variable overhead rate variance
Variable overhead efficiency variange
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Transcribed Image Text:5. The budgeted variable manufacturing overhead rate is $4.30 per direct labor-hour. During August, the company incurred $45,080 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 round intermediate calculations.) 1. Standard labor-hours allowed 2 Standard labor cost allowed 3. Labor spending variance 4. Labor rate variance nces Labor efficiency variance 5. Variable overhead rate variance Variable overhead efficiency variange < Prev 4 of 8 Next > 2:33 re to search 4/8/2 to 144 %, &
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