- Acme Company S Production Budget For August Is 17 500 Units And Includes The Following Component Unit Costs Direct Mate 1 (35.8 KiB) Viewed 82 times
Acme Company's production budget for August is 17,500 units and includes the following component unit costs: direct materials, $8; direct labor, $10; variable overhead, $6. Budgeted fixed overhead is $35,000. Actual production in August was 17,000 units. Actual unit component costs incurred during August include direct materials, $8.25; direct labor, $9.45; variable overhead, $6.82. Actual fixed overhead was $33,500. 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).) Actual Cost Budget Variance Original Budget (17,500 units) Flexed Budget (17,000 units) (17,000 units) Cost Component Direct materials $ Direct labor Variable overhead Fixed overhead $ Total budgeted cost 140,000 $ 175,000 105,000 35,000 455,000 $ 136,000 170,000 102,000 35,000 443,000 $