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: Standard Hours Standard Rate per Hour Standard Cost 27 minutes $5.80 $2.61 During August, 9,565 hours of direct labor time were needed to make 19,700 units of the Jogging Mate. The direct labor cost totaled $54,521 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,700 Jogging Mates? 2. What is the standard labor cost allowed (SH × SR) to make 19,700 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.10 per direct labor-hour. During August, the company incurred $43,999 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.

1) Standard labor hour allowed = 19,700 * 27/60 = 8,865 Hour

2) Standard labor cost allowed = 8,865 * 5.8 = $51,417

3) Labor spending variance = $51,417 - $54,521 = 3,104 U

4) Labor rate variance = (5.8 * 9565 - 54,521) = 956 F

   Labor efficiency variance = (8,865 - 9,565) * 5.8 = 4,060 U

5) Variable overhead rate variance = (4.1 * 9,565 - 43,999) = 4,782.5 U

   Variable overhead efficiency variance = (8865 - 9565) * 4.1 = 2870 U

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

a loan? that’s my guess, anywho.