Erie Company manufactures a mobile 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 Hours27 minutesStandard Rateper HourStandardCost$2.79$6.20During August, 9,320 hours of direct labor time were needed to make 19,000 units of the Jogging Mate. The direct labor cost totaled$55,920 for the month.Required:1. What is the standard labor-hours allowed (SH) to makes 19,000 Jogging Mates?2. What is the standard labor cost allowed (SH × SR) to make 19,000 Jogging Mates?3. What is the labor spending variance?4. What is the labor rate variance and the labor efficiency variance?5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $44,736 invariable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.(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.)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

Name: Erie Company manufactures a mobile fitness device called the Jogging
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Erie Company manufactures a mobile 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 Hours27 minutesStandard Rateper HourStanda

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Required: 1. What is the standard labor-hours allowed (SH) to makes 19,000 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,000 Jogging Mates? 3. What is the labor spending variance?

Required: 1. What is the standard labor-hours allowed (SH) to makes 19,000 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,000 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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