Erie Company manufactures a mobile fitness device called the Jogging Mate. The company's
labor standards for one Jogging Mate are as follows:
During August, hours of direct labor time were needed to make units of the
Jogging Mate. The direct labor cost totaled $ for the month.
Required:
What is the standard laborhours allowed SH to makes Jogging Mates?
What is the standard labor cost allowed SH to make Jogging Mates?
What is the labor spending variance?
What are the labor rate variance and the labor efficiency variance?
The budgeted variable manufacturing overhead rate is $ per direct laborhour. During
August, the company incurred $ in variable manufacturing overhead cost. Compute
the variable overhead rate and efficiency variances for the month.
Note: For requirements through indicate the effect of each variance by selecting F
for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all
amounts as positive values. Do not round intermediate calculations.
