Chapter 8 - Group Problem _1

Chapter 8 - Group Problem _1 - Name of Group_Group 2...

This preview shows pages 1–2. Sign up to view the full content.

Name of Group: ____Group 2 _______ Chapter 8 – Practice Problem Erie Company manufactures a small CD player called Jogging Mate. The company uses standards to control it costs. The labor standards that have been set for one Jogging Mate CD player are as follows: Standard Hours Standard Rate Per Hour Standard Cost 18 minutes \$ 12.00 \$ 3.60 During August, 5750 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled \$73,600 for the month. Required: What direct labor cost should have been incurred to make 20,000 units of the Jogging Mate? By how much does this differ from the cost that was incurred? Break down the difference in cost from (1) above into a labor rate variance and a labor efficiency variance. The budgeted variable manufacturing overhead rate is \$4 per direct labor-hour. During August, the company incurred \$21,850 in variable manufacturing overhead cost. Compute the variable overhead spending and efficiency variances

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

Chapter 8 - Group Problem _1 - Name of Group_Group 2...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online