Questions 1 and 2 refer to the following information The following information i

Question

Questions 1 and 2 refer to the following information The following information is for direct labor cost for X Company for 2016: Budgeted labor hours per unit of product Budgeted hourly wage rate Budgeted production Actual labor hours per unit of product Actual hourly wage rate Actual production 2.5 $13.20 4,300 units 2.1 $13.50 5,260 units 8 pt. What was the direct labor static budget for 2016? 1. AO S70,950 BO $141,900 CO $149,121 DO $173,580 EO $177,375 FO $212,850 S pt 2. What was the direct labor flexible budget variance for 2016 (a positive number means a favorable variance; a negative number means an unfavorable variance)? 2. AO S-T0,581 BO $38,901 CO 8-7,221 DO $24,459 EO $56,139 FO 87,819 tAfter X Company's first year of operation, the following financial statement information is available:

Explanation / Answer

1. Direct labour in static budget = (4300*2.5*13.20) = 141900

so answer is b) $141900

2. Flexible budget variance = Flexible budget labour-Actual labour

= (5260*2.5*13.20)-(5260*2.1*13.50)

Flexible budget variance = 24459 F

so answer is d) $24459

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.