Question
Acme Companys production budget for August is 19,300 units and includes the following component unit costs: direct materials, $9.0; direct labor, $11.8; variable overhead, $5.8.
Acme Companys production budget for August is 19,300 units and includes the following component unit costs: direct materials, $9.0; direct labor, $11.8; variable overhead, $5.8. Budgeted fixed overhead is $50,000. Actual production in August was 21,870 units, actual unit component costs incurred during August include direct materials, $10.00; direct labor, $11.20; variable overhead, $7.00. Actual fixed overhead was $53,300, the standard variable overhead rate per unit consists of $5.8 per machine hour and each unit is allowed a standard of 1 hour of machine time. During August, $153,090 of actual variable overhead cost was incurred for 25,515 machine hours.
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