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Reika [66]
3 years ago
7

Erie company manufactures a mobile fitness device called the jogging mate. the company uses standards to control its costs. the

labor standards that have been set for one jogging mate are as follows:
Business
1 answer:
scoray [572]3 years ago
7 0

Answer:

Standard Hours     Standard Rate per Hour      Standard Cost

24 minutes (0.4 hrs.)            $5.40                                  $2.16

During August, 8,390 hours of direct labor time were needed to make 19,600 units of the Jogging Mate. The direct labor cost totaled $43,628 for the month.

1. What is the standard labor-hours allowed (SH) to makes 19,600 Jogging Mates?

  • 19,600 jogging mates x 0.4 hours = 7,840 hours

2. What is the standard labor cost allowed (SH × SR) to make 19,600 Jogging Mates?

  • 7,840 hours x $5.40 = $42,336

3. What is the labor spending variance?

  • labor spending variance = standard cost - actual cost = $42,336 - $43,628 = $1,292 unfavorable

4. What is the labor rate variance and the labor efficiency variance?

  • labor rate variance = (standard rate - actual rate) x actual hours = ([$5.40 - ($43,628/8,390 hours)] x 8,390 hours = ($5.40 - $5.20) x 8,390 hours = $0.20 x 8,390 = $1,678 favorable
  • labor efficiency variance = (standard hours - actual hours) x actual rate = (7,840 hours - 8,390 hours) x $5.20 = -550 hours x $5.20 = -$2,860 unfavorable
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The dividend for 2017 will be = $2124.98

Explanation:

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The projected dividend for the year 2017 = 5504 x (2047 / 5302)

The projected dividend for the year 2017 = 2124.98

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6 0
3 years ago
Equipment was purchased for $300,000. Freight charges amounted to $14,000 and there was a cost of $40,000 for building a foundat
aksik [14]

Answer:

b)

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Explanation:

<em>According to International Accounting standards(IAS) 16 property plan and equipment (PPE), the cost of an asset is the purchase cost plus other costs of bringing it to the intended working conditions.</em>

So we will add the purchase cost to installation  , freight charges.

Cost of assets = 300,000 + 14,000 + 40,000 =$354,000

Annual depreciation = (Cost - Scrap Value)/ Number of years

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Annual Depreciation expense= $58,800

8 0
3 years ago
Evaluate this statement: "If the yield of two bonds having equal maturity changes the same amount, the price of the lower coupon
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FALSE

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As the lower coupon means there is less amount of cash subject to variation of interest rate.

We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.

If a bonds coupon payment is 40 dollars while another bond coupon payment  is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.

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7 0
1 year ago
Last year Lawn Corporation reported sales of $115,000 on its income statement. During the year, accounts receivable decreased by
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Answer:

$125,000

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Particulars                                                     Amount

Sales revenue                                            $115,000

Add: Accounts receivable decrease        <u>$10,000</u>

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The sales revenue adjusted to a cash basis for the year is $125,000.

4 0
3 years ago
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