Solution
Standard labor hours Allowed | 7760 | |
Standard labor cost allowed | $ 45,008.00 | |
Labor Spending Variance | $ 3,670.00 | Unfavourable-U |
Labor rate Variance | $ 854.00 | Favourable-F |
Labor Efficiency variance | $ 4,524.00 | Unfavourable-U |
Variable overhead Rate Variance | $ 5,978.00 | Unfavourable-U |
Variable overhead Efficiency Variance | $ 3,510.00 | Unfavourable-U |
Working
Actual DATA for | 19400 | Units | |
Quantity (AQ) | Rate (AR) | Actual Cost | |
Direct labor | 8540 | $ 5.70 | $ 48,678.00 |
Variable Overhead | 8540 | $ 5.20 | $ 44,408.00 |
.
Standard DATA for | 19400 | Units | |
Quantity (SQ) | Rate (SR) | Standard Cost | |
[A] | [B] | [A x B] | |
Direct labor | ( 0.4 Hour x 19400 Units)=7760 Hour | $ 5.80 | $ 45,008.00 |
Variable Overhead | ( 0.4 Hour x 19400 Units)=7760 Hour | $ 4.50 | $ 34,920.00 |
.
Labor Rate Variance | ||||||
( | Standard Rate | - | Actual Rate | ) | x | Actual Labor Hours |
( | $ 5.80 | - | $ 5.70 | ) | x | 8540 |
854 | ||||||
Variance | $ 854.00 | Favourable-F | ||||
Labour Efficiency Variance | ||||||
( | Standard Hours | - | Actual Hours | ) | x | Standard Rate |
( | 7760 | - | 8540 | ) | x | $ 5.80 |
-4524 | ||||||
Variance | $ 4,524.00 | Unfavourable-U |
.
Variable Overhead Rate Variance | ||||||
( | Standard Rate | - | Actual Rate | ) | x | Actual Labor Hours |
( | $ 4.50 | - | $ 5.20 | ) | x | 8540 |
$ (5,978.00) | ||||||
Variance | $ 5,978.00 | Unfavourable-U | ||||
Variable Overhead Efficiency Variance | ||||||
( | Standard Hours | - | Actual Hours | ) | x | Standard Rate |
( | 7760 | - | 8540 | ) | x | $ 4.50 |
$ (3,510.00) | ||||||
Variance | $ 3,510.00 | Unfavourable-U |
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to...
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 Hours 27 minutes Standard Rate per Hour $5.60 Standard Cost $2.52 During August, 9,240 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $50,820 for the month. Required: 1. What is the standard labor-hours allowed...
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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 Hours Standard Rate per Hour Standard Cost 27 minutes $6.40 $2.88 During August, 9,460 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $58,652 for the month. Required: 1. What is the standard labor-hours allowed...
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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 Hours 30 minutes Standard Rate per Hour $5.60 Standard Cost $2.80 During August, 10,280 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $56,540 for the month. Required: 1. What is the standard labor-hours allowed...
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 Hours Standard Rate per Hour Standard Cost 24 minutes $6.00 $2.40 During August, 8,440 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $48,952 for the month. Required: 1. What is the standard labor-hours allowed...
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 Hours 30 minutes Standard Rate per Hour $5.60 Standard Cost $2.80 During August, 10,280 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $56,540 for the month. Required: 1. What is the standard labor-hours allowed...
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 Hours 24 minutes Standard Rate Standard per Hour Cost $5.80 $5.80 $2.32 During August, 8,400 hours of direct labor time were needed to make 19,500 units of the Jogging Mate. The direct labor cost totaled $47,040 for the month. Required: 1. What is the standard labor-hours...
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 Hours 30 minutes Standard Rate per Hour $6.00 Standard Cost $3.00 During August, 10,690 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled $63,071 for the month. Required: 1. What is the standard labor-hours allowed...
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