Question & Answer: Catalogue Entries ▼ Home | MyPCC M Chapter 10 ExerdisesX ezto.mheducation com/hm tpx Hollowell Au…..

Catalogue Entries ▼ Home | MyPCC M Chapter 10 ExerdisesX ezto.mheducation com/hm tpx Hollowell Audio, Inc, manufactures military-specification compact discs. The company uses standards to control its costs. The labor standards that have been set for one disc are as follows Standard Hours 24 minutes Standard Rate $5.60 Standard Cost $2.24 During July, 8,230 hours of direct labor time were required to make 19,100 discs. The direct labor cost totaled $45,265 for the month. Required: 1a. According to the standards, what direct labor cost should have been incurred to make the 19,100 discs? (Do not round intermediate calculations. Omit the “$” sign in your response.) Total standard direct labor cost 1b. By how much does this differ from the cost that was incurred? (Input the amount as a positive value. Do not round intermediate calculations. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (ie., zero variance). Omit the “$” sign in your response.) Spending variance (Click to select) 2. Break down the difference in cost from (1) above into a labor rate variance and a labor efficiency variance. (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank- be certain to enter “o” wherever required. Indicate the effect of each variance by selecting “F for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.) Labor rate variance Labor efficiency variance (Click to select (Click to select) Type here to search