g Erie Company manufactures a small mp3 player called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate mp3 player are as follows: Standard Hours Standard Rate per Hour Standard Cost 27 minutes $6.00 $2.70 During August, 9,260 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $54,634 for the month. Required: 1. According to the standards, what direct labor cost should have been incurred to make 19,200 units of the Jogging Mate

Question

Chad Rose

Business

28 June, 12:10

g Erie Company manufactures a small mp3 player called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate mp3 player are as follows: Standard Hours Standard Rate per Hour Standard Cost 27 minutes $6.00 $2.70 During August, 9,260 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $54,634 for the month. Required: 1. According to the standards, what direct labor cost should have been incurred to make 19,200 units of the Jogging Mate

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Answers (1)

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Boston Watson · Answer 1

Direct labor = $51,840

Explanation:

Giving the following information:

Standard Hours = 27 minutes

Standard Rate per Hour = $6

Standard Cost = $2.70

During August, 9,260 hours of direct labor time were needed to make 19,200 units of the Jogging Mate.

We need to determine the standard cost for 19,200 units.

Direct labor = standard cost per unit*number of units

Direct labor = 2.7*19,200 = $51,840