Accounting Capstone - Budget Performace Variance Report StandardHoursStandard Cost11AXXtAStandardRate Direct LaborUnder normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of labor per pair of shoes. During August, Sole Purpose Shoe Company incurred actual direct labor costs of $65,340for 7,260 hours of direct labor in the production of 2,100 pairs of shoes.Complete the following table, showing the direct labor variance relationships for August for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use anegative number for a favorable variance, and a positive number for an unfavorable variance.Actual CostActualHours= $XXActualRateDirect LaborVariance:ActualHours= $XXTotal Direct LaborVariance:StandardRateDirect LaborVariance:StandardHoursStane= $

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Description: Accounting Capstone - Budget Performace Variance Report StandardHoursStandard Cost11AXXtAStandardRate Direct LaborUnder normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of labor per pair of shoes. During August,

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FINANCIAL ACCOUNTING

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Accounting Capstone - Budget Performace Variance Report

Standard
Hours
Standard Cost
11
A
X
X
tA
Standard
Rate

Direct Labor
Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of labor per pair of shoes. During August, Sole Purpose Shoe Company incurred actual direct labor costs of $65,340
for 7,260 hours of direct labor in the production of 2,100 pairs of shoes.
Complete the following table, showing the direct labor variance relationships for August for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a
negative number for a favorable variance, and a positive number for an unfavorable variance.
Actual Cost
Actual
Hours
= $
X
X
Actual
Rate
Direct Labor
Variance:
Actual
Hours
= $
X
X
Total Direct Labor
Variance:
Standard
Rate
Direct Labor
Variance:
Standard
Hours
Stane
= $

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

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