Acme Company's production budget for August is 23,000 units and includes the following component unit costs: direct materials, $9.00; direct labor, $11.00; variable overhead, $5.80. Budgeted fixed overhead is $49,000. Actual production in August was 24,075 units. Actual unit component costs incurred during August include direct materials, $10.00; direct labor, $10.00; variable overhead, $6.80. Actual fixed overhead was $52,200. 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., zero variance). Cost Component Direct materials Direct labor Variable overhead Fixed overhead Total budgeted cost Original Budget (23,000 units) Flexed Budget Actual Cost Budget Variance (24,075 units) (24,075 units)

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Acme Company's production budget for August is 23,000 units and includes the following component unit costs: direct materials,
$9.00; direct labor, $11.00; variable overhead, $5.80. Budgeted fixed overhead is $49,000. Actual production in August was 24,075
units. Actual unit component costs incurred during August include direct materials, $10.00; direct labor, $10.00; variable overhead,
$6.80. Actual fixed overhead was $52,200.
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., zero
variance).
Cost Component
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total budgeted cost
Original Budget
(23,000 units)
Flexed Budget
Actual Cost
Budget Variance
(24,075 units)
(24,075 units)
Transcribed Image Text:Acme Company's production budget for August is 23,000 units and includes the following component unit costs: direct materials, $9.00; direct labor, $11.00; variable overhead, $5.80. Budgeted fixed overhead is $49,000. Actual production in August was 24,075 units. Actual unit component costs incurred during August include direct materials, $10.00; direct labor, $10.00; variable overhead, $6.80. Actual fixed overhead was $52,200. 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., zero variance). Cost Component Direct materials Direct labor Variable overhead Fixed overhead Total budgeted cost Original Budget (23,000 units) Flexed Budget Actual Cost Budget Variance (24,075 units) (24,075 units)
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