Question
Acme Companys production budget for August is 18,000 units and includes the following component unit costs: direct materials, $8.00; direct labor, $11.20; variable overhead, $6.00.
Acme Companys production budget for August is 18,000 units and includes the following component unit costs: direct materials, $8.00; direct labor, $11.20; variable overhead, $6.00. Budgeted fixed overhead is $44,000. Actual production in August was 18,400 units. Actual unit component costs incurred during August include direct materials, $9.40; direct labor, $10.00; variable overhead, $6.60. Actual fixed overhead was $46,700. Required: Prepare a performance report, including each cost component. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
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