CH1O Assignment Help Save&Exit; Subn 2 Check my work Erie Company manufactures a
ID: 2524165 • Letter: C
Question
CH1O Assignment Help Save&Exit; Subn 2 Check my work Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to labor standards that have been set for one Jogging Mate are as follows hinutesper During August, 8.200 hours of direct labor time were needed to make 19,100 units of the Jogging Mate. The direct labor cost sotaled $48.380 for the month H Required 1. Whet is the standard labor hours allowed (SH) to makes 19100 Jegging Mates? 2. What is the standard labor cost allowed (SH SR) to make 19300 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 overheed rate is $430 per direct labor-hour During August, the company incured $41000n varlable manufacturing ovemead cost Compute the variable overheed rabe and efficiency variances for the montn (For requirements 3 through S, indicate the effect of each variance by selecting "P for faverable, "U" for unfavoraeble, and "None" for no effect (i.e, zero varlance). Input all amounts as positive values. Do not round interhediate calculations)Explanation / Answer
1)standard hours alowed = standard time per unit * number of unit /60 minutes
= 24*19100/60
= 7640 hours
2)standard labor cost = 7640 * 6 =$ 45840
3)Labor spending variance = actual cost -standard cost
= 48380 -45840
= 2540 U
4)Labor rate variance = Actual cost -[AH*SR]
= 48380 - [8200*6]
= 820 F
Labor efficiency variance =SR[AH-SH]
6[8200-7640]
3360 U
5)Variable overhead variance =actual cost -[AH*SR]
41000- [8200*4.3]
5740 U
Variable overhead efficiency variance =SR[AH-SH]
4.3 [8200-7640]
2408 U
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