Ene Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards...
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Ene Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that hove been set for one Jogging Mate are as follows: During August, 9.315 hours of direct labor time were needed to make 19.500 units of the Jogging Mate. The direct labor cost totaled $55,890 for the month. Required: 1. What is the standard abor-hours allowed (SH) to makes 19.500 Jogging Mates? 2. What is the standard labor cost allowed (SH * SF) to make 19.500 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 $430 per direct labor-hour Puring August, the company incurred $46.575 in variable manufacturing ovemead cost. Compute the variable overhead rate and effic ncy 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., zeto variance), input all amounts as positive values. Do not round intermediote calculations.)
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