Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company uses...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards that have been set for one speaker are as follows:
Standard Hours
Standard Rate per Hour
Standard Cost
12 minutes (0.20 hours)
$10.00
$2.00
During July, 2,150 hours of direct labour time were recorded to make 10,000 units. The direct labour cost totalled $21,070 for the month.
Required:
1-a. What direct labour cost should have been incurred to make the 10,000 speakers? (Do not round intermediate calculations.)
1-b. By how much does direct labour cost differ from the cost that was incurred? (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
