Acme Company's production budget for August is 17,800 units and includes the following component unit costs: direct materials, $6.00; direct labor, $10.00; variable overhead, $6.00. Budgeted fixed overhead is $35,000. Actual production in August was 19,368 units. Actual unit component costs incurred during August include direct materials, $8.50; direct labor, $9.50; variable overhead, $7.50. Actual fixed overhead was $36,800. Required: Prepare a performance report, including each cost component. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" no effect (i.e., zero variance).) Cost Component Direct materials Direct labor Variable overhead Fixed overhead Original Budget Flexed Budget Actual Cost (19,368 (17,800 units) (19,368 units) units) Budget Variance

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Acme Company's production budget for August is 17,800 units and includes the following component unit costs: direct materials, $6.00; direct labor, $10.00; variable
overhead, $6.00. Budgeted fixed overhead is $35,000. Actual production in August was 19,368 units. Actual unit component costs incurred during August include direct
materials, $8.50; direct labor, $9.50; variable overhead, $7.50. Actual fixed overhead was $36,800.
Required:
Prepare a performance report, including each cost component. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for
no effect (i.e., zero variance).)
Cost Component
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total budgeted cost
Original Budget Flexed Budget
(17,800 units)
(19,368 units)
Actual Cost
(19,368
units)
Budget Variance
Transcribed Image Text:Acme Company's production budget for August is 17,800 units and includes the following component unit costs: direct materials, $6.00; direct labor, $10.00; variable overhead, $6.00. Budgeted fixed overhead is $35,000. Actual production in August was 19,368 units. Actual unit component costs incurred during August include direct materials, $8.50; direct labor, $9.50; variable overhead, $7.50. Actual fixed overhead was $36,800. Required: Prepare a performance report, including each cost component. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Cost Component Direct materials Direct labor Variable overhead Fixed overhead Total budgeted cost Original Budget Flexed Budget (17,800 units) (19,368 units) Actual Cost (19,368 units) Budget Variance
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