Compute the variable overhead rate and efficiency variances

Assignment Help Accounting Basics
Reference no: EM131764891

Question - Erie Company manufactures a small mp3 player called the Jogging Mate. The Company uses standards to control its costs. The labor standards that have been set for one Jogging Mate mp3 player are as follows:

Standard Hours - 24 minutes

Standard Rate per Hour - $6.00

Standard Cost - $2.40

During August 8,390 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $48,662 for the month.

Required -

1. According to the standard, whatr direct labor should have been incurred to make 19,200 units of the Jogging Mate? By how much does this differ from the cost that was incurred?

2. Break down the difference in cost form (1) above into a labor rate variance and a labor efficiency variance.

3. The budgeted variable manufacturing overhead rate is $4.1 per direct labor-hour. During August, the company incurred $38,594 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.

Reference no: EM131764891

Questions Cloud

How do you know that you are not dreaming right now : Exactly how do you know that you are not dreaming right now? Think about films like Inception or The Matrix or The Others or The Sixth Sense.
Describe the two most valuable lessons you learned : Describe the two most valuable lessons you learned about communication principles from this course. Provide at least two examples to support your rationale.
Compute the proper adjusting entry : At Dec. 31, the amount of unused supplies on hand was determined by count to amount to 1460. The proper adjusting entry would be
Journalize accounting transactions in general journal form : Journalize the following accounting transactions in general journal form or T-account form. Identify each transaction by number. You may omit explanations.
Compute the variable overhead rate and efficiency variances : During August, the company incurred $38,594 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances
Write a paper about is inequality necessary : Write a paper about is inequality necessary? Can and should we all function as equals? Explain. Times new roman of two pages.
Create a presentation in which you synthesize your research : Create and deliver strong presentations is a critical skill for all managers, leaders, and employees.
Discuss the customer has no legal obligation to make : Is Carey required to include any of her tips in gross income when the customer has no legal obligation to make
Define the difference in income between the alternatives : Juanita Company must decide whether to make or buy some of its components for the appliances it produces. The costs of producing 166,000 electrical cords.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd