le Edit View History Bookmarks Develop Window Help pter 10 Homework 4 Erie Compa

Question

le Edit View History Bookmarks Develop Window Help pter 10 Homework 4 Erie Company manufectures 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 follow: control its costs. The During August, 970 hours of direct labor time were needed to make 19,900 units of the Joging Mate. $50,466 for the month. The direct labor cost Required: 1 What is the standard labor-hours allowed (SH) to makes 19,900 Jogging Mates? 2. what is the standard labor cost allowed (SH·S, to make 19.900 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? sa Taoiegarngte s an ngcastore comonm cured $50,466 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the monch requirements 3 through 5, indicate of each no effect (i.e. zero variance Input all amounts as positive values. Do no round intermediate calcula the effect of each variance by selecting " for favorable, "U" for unfavorable, and "None 2 Standard labor cost allowed 3Labor spending variance 4. Labor rate variance Labor efficiency variance 5 Variable overhead rate variance Variable overhead eficiency variance 8

Explanation / Answer

Calculate following :

S.No. 1 Standard labour hours allowed (19900*27/60) 8955 Hours 2 Standard direct labour cost (8955*5.40) 48357 3 Labour spending variance (48357-50466) 2109 U 4 Labour rate variance (5.40*9705-50466) 1941 F Labour efficiency variance (8955-9705)5.40 4050 U 5 Variable overhead rate variance (4.50*9705-50466) 6793.50 U Variable overhead efficiency variance (8955-9705)4.50 3375 U

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