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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
