Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards that have been set for one speaker are as follows: Standard Hours 12 minutes (0.20 hours) During July, 3,850 hours of direct labour time were recorded to make 18.000 units. The direct labour cost totalled $74,305 for the month. Drect labour cost Required: 1-6. What direct labour cost should have been incurred to make the 18,000 speakers? (Do not round intermediate calculations.) Standard Rate per Hour $19.00 Total variance $ 5 Standard Cost $3.80 68,400 1-b. By how much does direct labour cost differ from the cost that was incurred? (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 5,905 U D

Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards that have been set for one speaker are as follows: Standard Hours 12 minutes (0.20 hours) During July, 3,850 hours of direct labour time were recorded to make 18.000 units. The direct labour cost totalled $74,305 for the month. Drect labour cost Required: 1-6. What direct labour cost should have been incurred to make the 18,000 speakers? (Do not round intermediate calculations.) Standard Rate per Hour $19.00 Total variance $ 5 Standard Cost $3.80 68,400 1-b. By how much does direct labour cost differ from the cost that was incurred? (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 5,905 U D

Name: A.12. 2. Break down the difference in cost from requirement 1-b above
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Description: A.12. 2. Break down the difference in cost from requirement 1-b above into a labour rate variance and a labour efficiency variance. (Indicatethe effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2PA: Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $180, and 27,000...

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