Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 11 Aug 2017 My Price 12.00

Hollowell Audio, Inc.

Hollowell Audio, Inc., manufactures military-specification compact discs. The company uses standards to control its costs. The labor standards that have been set for one disc are as follows:

 

Standard
Hours		 Standard
Rate		 Standard
Cost
6 minutes $24.00 $2.40

 

During July, 2,125 hours of direct labor time were required to make 20,000 discs. The direct labor cost totaled $49,300 for the month.

 

Required:
1a.

According to the standards, what direct labor cost should have been incurred to make the 20,000 discs? (Do not round intermediate calculations. Omit the "$" sign in your response.)

 

Total standard direct labor cost $

 

1b.

By how much does this differ from the cost that was incurred? (Input the amount as a positive value. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

 

Spending variance $ (Click to select) F U None

 

2.

Break down the difference in cost from (1) above into a labor rate variance and a labor efficiency variance. (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

 

     
Labor rate variance $ (Click to select) F U None
Labor efficiency variance $ (Click to select) F U None

 

3.

The budgeted variable manufacturing overhead rate is $16.00 per direct labor-hour. During July, the company incurred $39,100 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

 

     
Variable overhead rate variance $ (Click to select) F U None
Variable overhead efficiency variance $ (Click to select) F U None

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 03:08 PM My Price 12.00

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