Mini-Exercise 15-4 (Algo) Direct labor variances LO 15-4, 15-5 Acme Company's production budget for August is 19,400 units and includes the following component unit costs: direct materials, $10.00; direct labor, $12.50; variable overhead, $6.00. Budgeted fixed overhead is $51,000. Actual production in August was 20,928 units. Actual unit component costs incurred during August include direct materials, $10.50; direct labor, $12.00; variable overhead, $6.50. Actual fixed overhead was $54,400. The standard direct labor cost per unit consists of 0.5 hour of labor time at $25 per hour. During August, $251,136 of actual labor cost was incurred for 9,810 direct labor hours. Required: Calculate the labor rate variance and labor efficiency variance for August. Note: Indicate the effect of each variance by selecting "" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Labor rate variance Labor efficiency variance

Mini-Exercise 15-4 (Algo) Direct labor variances LO 15-4, 15-5 Acme Company's production budget for August is 19,400 units and includes the following component unit costs: direct materials, $10.00; direct labor, $12.50; variable overhead, $6.00. Budgeted fixed overhead is $51,000. Actual production in August was 20,928 units. Actual unit component costs incurred during August include direct materials, $10.50; direct labor, $12.00; variable overhead, $6.50. Actual fixed overhead was $54,400. The standard direct labor cost per unit consists of 0.5 hour of labor time at $25 per hour. During August, $251,136 of actual labor cost was incurred for 9,810 direct labor hours. Required: Calculate the labor rate variance and labor efficiency variance for August. Note: Indicate the effect of each variance by selecting "" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Labor rate variance Labor efficiency variance

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Description: **Mini-Exercise 15-4 (Algo) Direct Labor Variances LO 15-4, 15-5****Acme Company's production budget for August** is 19,400 units and includes the following component unit costs:- Direct materials: $10.00- Direct labor: $12.50- Variable overhead: $6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Direct Materials and Direct Labor Variances
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