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 27 minutes Standard Rate per Hour $6.20 Standard Cost $ 2.79 During August, 9,325 hours of direct labor time were needed to make 19,500 units of the Jogging Mate. The direct labor cost totaled $55,950 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,500 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,500 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 $4.30 per direct labor-hour. During August, the company incurred $44,760 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 favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.

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 27 minutes Standard Rate per Hour $6.20 Standard Cost $ 2.79 During August, 9,325 hours of direct labor time were needed to make 19,500 units of the Jogging Mate. The direct labor cost totaled $55,950 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,500 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,500 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 $4.30 per direct labor-hour. During August, the company incurred $44,760 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 favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.

Name: Erie Company manufactures a mobile fitness device called the Jogging
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Description: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company's labor standards for one Jogging Mateare as follows:StandardHours27 minutesStandard Rateper Hour$ 6.20StandardCost$ 2.79During August, 9,325 hours of direct labo

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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