Chapter 8 - Group Problem _1 - Solution

Chapter 8 - Group Problem _1 - Solution - Name of Group...

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Name of Group: __________________ 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
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This note was uploaded on 06/05/2010 for the course ACC Acc208 taught by Professor Acc208 during the Fall '09 term at Cal Poly Pomona.

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Chapter 8 - Group Problem _1 - Solution - Name of Group...

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