Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Acme Companys production budget for August is 23,000 units and includes the following component unit costs: direct materials, $9.00; direct labor, $11.00; variable overhead, $5.80.

Acme Companys production budget for August is 23,000 units and includes the following component unit costs: direct materials, $9.00; direct labor, $11.00; variable overhead, $5.80. Budgeted fixed overhead is $49,000. Actual production in August was 24,075 units. Actual unit component costs incurred during August include direct materials, $10.00; direct labor, $10.00; variable overhead, $6.80. Actual fixed overhead was $52,200. The standard direct labor cost per unit consists of 0.5 hour of labor time at $22 per hour. During August, $240,750 of actual labor cost was incurred for 9,630 direct labor hours. Required: Calculate the labor rate variance and labor efficiency variance for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions

Question

Why does contouring require both velocity and positional feedback?

Answered: 1 week ago