Chapter 11 Homework Problem 2 Blank

# Chapter 11 Homework Problem 2 Blank - Break down the...

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Erie Company manufactures a small CD player called the Jogging Mate. The company uses standards to control its 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 27 minutes \$6 \$2.7 During August, 9,415 hours of direct labor time were needed to make 19,500 units of the Jogging Mate. The direct labor cost totaled \$55,548 for the month. Requirement 1: (a ) What direct labor cost should have been incurred to make 19,500 units of the Jogging Mate? (Omit the "\$" sign in your response.) Standard direct labor cost \$ (b ) By how much does this differ from the cost that was incurred? (Indicate the effect of the variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "\$" sign in your response.) Total variance \$ Requirement 2:

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Unformatted text preview: Break down the difference in cost from Requirement 1 above into a labor rate variance and a labor efficiency variance. (Indicate the effect of the variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "\$" sign in your response.) Labor rate variance \$ Labor efficiency variance \$ Requirement 3: The budgeted variable manufacturing overhead rate is \$4.5 per direct labor-hour. During August, the company incurred \$47,075 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (Indicate the effect of the variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "\$" sign in your response.) Variable Overhead Rate Variance \$ Variable Overhead Efficiency Variance \$...
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Chapter 11 Homework Problem 2 Blank - Break down the...

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