Brief Exercise 22-3 In Rooney Company, direct labor is $25 per hour. The company

Question

Brief Exercise 22-3 In Rooney Company, direct labor is $25 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2017, direct labor totaling $225,300 is incurred in working 11,400 hours. Prepare a static budget report. ROONEY COMPANY Static Direct Labor Budget Report For the Month Ended January 31, 2017 Product Line Budget Actual Difference Direct Labors LINK TO TEXT INTERACTIVE TUTORIAL Prepare a flexible budget report. ROONEY COMPANY Flexible Direct Labor Budget Report For the Month Ended January 31, 2017 Product Line Budget Actual Difference Direct Labor

Explanation / Answer

ROONEY COMPANY

Static Direct Labor Budget Report

For the Month Ended January 31, 2017

Product Line

Budget

Actual

Difference

Direct Labor

$2,50,000*

$2,25,300

$24,700

Favorable

*10,000 x $25 = $2,50,000

ROONEY COMPANY

Flexible Direct Labor Budget Report

For the Month Ended January 31, 2017

Product Line

Budget

Actual

Difference

Direct Labor

$2,85,000*

$2,25,300

$59,700

Favorable

*11,400 x $25 = $2,85,000

ROONEY COMPANY

Static Direct Labor Budget Report

For the Month Ended January 31, 2017

Product Line

Budget

Actual

Difference

Direct Labor

$2,50,000*

$2,25,300

$24,700

Favorable

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