Acme Company's production budget for August is 17,700 units and includes the following component unit costs: direct materials,$6.00; direct labor, $10.20; variable overhead, $6.20. Budgeted fixed overhead is $34,000. Actual production in August was 18,630units. Actual unit component costs incurred during August include direct materials, $8.40; direct labor, $9.60; variable overhead, $7.00.Actual fixed overhead was $35,700.Required:Prepare a performance report, including each cost component.Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance).Cost ComponentDirect materialsDirect laborVariable overheadFixed overheadTotal budgeted costOriginal Budget(17,700 units)Flexed Budget(18,630 units)Actual Cost(18,630 units)Budget Variance

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Description: Acme Company's production budget for August is 17,700 units and includes the following component unit costs: direct materials,$6.00; direct labor, $10.20; variable overhead, $6.20. Budgeted fixed overhead is $34,000. Actual production in August was

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Acme Company's production budget for August is 17,700 units and includes the following component $6.00; direct labor, $10.20; variable overhead, $6.20. Budgeted fixed overhead is $34,000. Actual pro units. Actual unit component costs incurred during August include direct materials, $8.40; direct labor, Actual fixed overhead was $35,700.

Acme Company's production budget for August is 17,700 units and includes the following component $6.00; direct labor, $10.20; variable overhead, $6.20. Budgeted fixed overhead is $34,000. Actual pro units. Actual unit component costs incurred during August include direct materials, $8.40; direct labor, Actual fixed overhead was $35,700.

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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