he following data are given for Harry Company: Budgeted production 26,000 units Actual production 27,500 units Materials: Standard price per ounce $6.50 Standard ounces per completed unit 8 Actual ounces purchased and used in production 228,000 Actual price paid for materials $1,504,800 Labor: Standard hourly labor rate $22.00 per hour Standard hours allowed per completed unit 6.6 Actual labor hours worked 183,000 Actual total labor costs $4,020,000 Overhead: Actual and budgeted fixed overhead $1,029,600 Standard variable overhead rate $24.50 per standard labor hour Actual variable overhead costs $4,520,000 Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor time variance is a.$33,000 unfavorable b.$33,000 favorable c.$6,000 unfavorable d.$6,000 favorable
he following data are given for Harry Company: Budgeted production 26,000 units Actual production 27,500 units Materials: Standard price per ounce $6.50 Standard ounces per completed unit 8 Actual ounces purchased and used in production 228,000 Actual price paid for materials $1,504,800 Labor: Standard hourly labor rate $22.00 per hour Standard hours allowed per completed unit 6.6 Actual labor hours worked 183,000 Actual total labor costs $4,020,000 Overhead: Actual and budgeted fixed overhead $1,029,600 Standard variable overhead rate $24.50 per standard labor hour Actual variable overhead costs $4,520,000 Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor time variance is a.$33,000 unfavorable b.$33,000 favorable c.$6,000 unfavorable d.$6,000 favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Use this information for Harry Company to answer the question that follow.
The following data are given for Harry Company:
Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)
The direct labor time variance is
The following data are given for Harry Company:
| Budgeted production | 26,000 units |
| Actual production | 27,500 units |
| Materials: | |
| Standard price per ounce | $6.50 |
| Standard ounces per completed unit | 8 |
| Actual ounces purchased and used in production | 228,000 |
| Actual price paid for materials | $1,504,800 |
| Labor: | |
| Standard hourly labor rate | $22.00 per hour |
| Standard hours allowed per completed unit | 6.6 |
| Actual labor hours worked | 183,000 |
| Actual total labor costs | $4,020,000 |
| Actual and budgeted fixed overhead | $1,029,600 |
| Standard variable overhead rate | $24.50 per standard labor hour |
| Actual variable overhead costs | $4,520,000 |
Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)
The direct labor time variance is
a.$33,000 unfavorable
b.$33,000 favorable
c.$6,000 unfavorable
d.$6,000 favorable
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