Given the current standards, what is the expected DL and variable-MOH cost per unit? (Round answers to 2 decimal places, e.g. 15.25.) DL cost per unit Variable-MOH cost per unit $ (b) eTextbook and Media $ Your answer is partially correct. DL cost per unit Varlable-MOH cost per unit What would the standards look like for both DL and variable-MOH if management reduces expected DL time per unit by 10%? Specify the new expected DL and variable-MOH cost per unit given this change. Note that the current variable-MOH rate per hour was originally estimated using 11,400 total DL hours. Further, since Concord Motors is not changing its expected production, it does not expect its total variable-MOH costs to change. (Round answers to 2 decimal places, e.g. 15.25.) $ 60 $ 27 Attempts: 1 of 3 used 54

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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n.3

 

The management team at Concord Motors is having a discussion about the standard costs for its most popular boat motor. For the
year just ended, all variable cost variances were slightly favorable. Some on the management team believe the team could be a bit
more aggressive on the standard specifications (related to DL and variable-MOH, which is applied using DL hours), while others
believe the best approach is to stick with the standards currently in place, shown here:
Direct labor
Variable-MOH
(a)
3 hours per unit
3 hours per unit
Your answer is correct.
DL cost per unit
Given the current standards, what is the expected DL and variable-MOH cost per unit? (Round answers to 2 decimal places, e.g.
15.25.)
(b)
Variable-MOH cost per unit
eTextbook and Media
$
@$20.00/DL hour
@$9.00/DL hour
Your answer is partially correct.
DL cost per unit
Varlable-MOH cost per unit $
60
27
What would the standards look like for both DL and variable-MOH if management reduces expected DL time per unit by 10%?
Specify the new expected DL and variable-MOH cost per unit given this change. Note that the current variable-MOH rate per
hour was originally estimated using 11,400 total DL hours. Further, since Concord Motors is not changing its expected
production, it does not expect its total variable-MOH costs to change. (Round answers to 2 decimal places, eg. 15.25.)
Attempts: 1 of 3 used
54
Transcribed Image Text:The management team at Concord Motors is having a discussion about the standard costs for its most popular boat motor. For the year just ended, all variable cost variances were slightly favorable. Some on the management team believe the team could be a bit more aggressive on the standard specifications (related to DL and variable-MOH, which is applied using DL hours), while others believe the best approach is to stick with the standards currently in place, shown here: Direct labor Variable-MOH (a) 3 hours per unit 3 hours per unit Your answer is correct. DL cost per unit Given the current standards, what is the expected DL and variable-MOH cost per unit? (Round answers to 2 decimal places, e.g. 15.25.) (b) Variable-MOH cost per unit eTextbook and Media $ @$20.00/DL hour @$9.00/DL hour Your answer is partially correct. DL cost per unit Varlable-MOH cost per unit $ 60 27 What would the standards look like for both DL and variable-MOH if management reduces expected DL time per unit by 10%? Specify the new expected DL and variable-MOH cost per unit given this change. Note that the current variable-MOH rate per hour was originally estimated using 11,400 total DL hours. Further, since Concord Motors is not changing its expected production, it does not expect its total variable-MOH costs to change. (Round answers to 2 decimal places, eg. 15.25.) Attempts: 1 of 3 used 54
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