What would the standards look like for both DL and variable-MOH if management reduces expected DL time per unit by 10%? Specify the new expected DL and variable-MOH cost per unit given this change. Note that the current variable-MOH rate per hour was originally estimated using 6,600 total DL hours. Further, since Bramble Motors is not changing its expected production, it does not expect its total variable-MOH costs to change. (Round answers to 2 decimal places, e.g. 15.25.)
What would the standards look like for both DL and variable-MOH if management reduces expected DL time per unit by 10%? Specify the new expected DL and variable-MOH cost per unit given this change. Note that the current variable-MOH rate per hour was originally estimated using 6,600 total DL hours. Further, since Bramble Motors is not changing its expected production, it does not expect its total variable-MOH costs to change. (Round answers to 2 decimal places, e.g. 15.25.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please dont provide answer in image format thank you
Transcribed Image Text:The management team at Bramble Motors is having a discussion about the standard costs for its most popular boat motor. For the
year just ended, all variable cost variances were slightly favorable. Some on the management team believe the team could be a bit
more aggressive on the standard specifications (related to DL and variable-MOH, which is applied using DL hours), while others
believe the best approach is to stick with the standards currently in place, shown here:
Direct labor
Variable-MOH
(b)
2 hours per unit
2 hours per unit
Your answer is partially correct.
DL cost per unit
What would the standards look like for both DL and variable-MOH if management reduces expected DL time per unit by 10%?
Specify the new expected DL and variable-MOH cost per unit given this change. Note that the current variable-MOH rate per
hour was originally estimated using 6,600 total DL hours. Further, since Bramble Motors is not changing its expected production,
it does not expect its total variable-MOH costs to change. (Round answers to 2 decimal places, e.g. 15.25.)
Variable-MOH cost per unit
@$19.00/DL hour
@$8.10/DL hour
$
15 16 17 18 1.19 1
34.2
14.58
20
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