|
Standard Hours
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Standard Rate Per Hour
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Standard Cost
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|
24 minutes
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$5.40
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$2.16
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During August, 8,460 hours of direct labour time were needed to make 19,400 units of the Jogging Mate. The direct labour cost totalled $43,992 for the month.
Required:
1. According to the standards, what direct labour cost should have been incurred to make 19,400 units of the Jogging Mate? By how much does this differ from the cost that was incurred?
2. Break down the difference in cost from (1) above into a labour rate variance and a labour efficiency variance. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect
Labour rate variance
Labour efficiency variance
The budgeted variable manufacturing overhead rate is $4.7 per direct labour-hour. During August, the company incurred $45,684 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
Variable overhead rate variance
Variable overhead efficiency variance.