Erle Company manufactures a moble fitness device called the JoggIng Mate. The company uses standards to control Its costs. Thelabor standards that have been set for one Jogging Mate are as follows:Standard RateStandardper Hour$6.00Standard HoursCost27 minutes$2.70During August, 9,690 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled$56,202 for the month.Requlred:1. What Is the standard labor-hours allowed (SH) to makes 20,000 Jogging Mates?2. What is the standard labor cost allowed (SH x SR) to make 20,000 Jogging Mates?3. What Is the labor spending varlance?4. What is the labor rate varlance and the labor efficiency varlance?5. The budgeted varlable manufacturing overhead rate is $4.10 per direct labor-hour. During August, the company Incurred $48,450 invarlable manufacturing overhead cost. Compute the varlable overhead rate and efficiency varlances for the month.(For requlrements 3 through 5, Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None"for no effect (I.e., zero varlance). Input all amounts as positive values. Do not round Intermedlate calculations.)1. Standard labor-hours allowed2. Standard labor cost allowed3. Labor spending variance4. Labor rate variance4. Labor efficiency variance5. Variable overhead rate variance5. Variable overhead efficiency variance

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Erle 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 Rate Standard Standard Hours per Hour $6.e0 Cost 27 minutes $2.70 During August, 9,690 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled $56,202 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 20,000 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 20,000 Jogging Mates? 3. What is the labor spending variance?

Erle 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 Rate Standard Standard Hours per Hour $6.e0 Cost 27 minutes $2.70 During August, 9,690 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled $56,202 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 20,000 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 20,000 Jogging Mates? 3. What is the labor spending variance?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...

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