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ttps://newconnect.mheducation.com/flow/connect.html 098% : 0??100%??????908 Help Save & Exit Submit Check my work 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 adStandard ate Standard ints Hours 18 minutes per Hour $17.00 Cost $5.10 eBook During August, 5,750 hours of direct labor time were needed to make 20.000 units of the Jogging Mate. The direct labor cost totaled $102,350 for the month. Hint Print Required: 1. What is the standard labor-hours allowed (sto makes 2000o Jogging Mates? 2. What is the standard labor cost allowed (SH SR) to 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhoad rate is $4 per direct iabor-hour. During August, the company incurred $21850 in variable manufacturing overhead cost Compute the varlable overhead rate and efficiency variances for the month References make 20,000 Jogging Mates? (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 1. Standard labor-hours allowed 2 Standard labor cost allowed Prev 10,4 ill Next >

Solution

Req 1. Std Hour allowed per unit of output: 18 minutes Actual output: 20000 units Sstd labour hours allowed (20000*18/60): 6000 hours Req 2: Std labour hours allowed: 6000 hours Std rate per hour: $ 17.00 Std labour cost allowed: 6000 hours @17= 102,000 Req 3: labour spening Vvariance: Std labour cost allowed - Actual labour cost 102000-102350 = $ 350 Unfavorable Req 4: Actual labour cost: 102350 Actual rate per hour: (102350/5750) = $17.80 Labour rate variance: Actual Labour hours (St rate -Actual rate) 5750 (17.00-17.80) = $4600 Unfav Labour efficiency variance: Std rate (Std hours- Actual hours) 17 (6000-5750) = $4250 Fav Req 5: Std variable OH rate per hour: $ 4 per DLH Actual variable OH per hour: (21850/5750)= $ 3.80 peer DLH Variable OH rate variance: Actual labouor hours (Std rate-Actual rate) 5750 (4.00-3.80)= 1150 Fav Variable OH efficiency Variance: Std rate per hour (Std hours-Actual hours) 4.00 (6000-5750)= $1000 Fav