Question
Jaunty Coffee Company Flexible Budget Performance Report BudgetActualDifference Favorable-F Unfavorable-U Production in units32,00032,000 Direct Labor Direct labor hours (1 hour/unit)12,00011,500500FDirect labor costs ($15/hour)$180,000$168,000$12,000F Direct Materials
Jaunty Coffee Company
Flexible Budget Performance Report
BudgetActualDifference
Favorable-F
Unfavorable-UProduction in units32,00032,000Direct LaborDirect labor hours (1 hour/unit)12,00011,500500FDirect labor costs ($15/hour)$180,000$168,000$12,000FDirect MaterialsQuantity (2/unit)24,00023,200800FDollars ($30/unit)$360,000$358,000$2,000FVariable CostsIndirect materials180,000215,00035,000UIndirect labor119,000109,00010,000FUtilities147,000151,0004,000UTotal variable costs446,000475,00029,000UFixed CostsDepreciation80,00080,0000Property taxes10,00010,0000Supervision160,000160,0000Total fixed costs250,000250,0000Total costs1,236,0001,251,00015,000
Whatis an explanation for the company's direct labor variance?
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Computer Accounting
Authors: Donna Kay
15th Edition
0077826841, 9780077826840
