The following information is for direct labor cost for X Company for 2016: Budge

Question

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 3 $14.00 5,500 units 2.8 $14.30 6,660 units 1. What was the direct labor static budget for 2016? $231,000 You are correct. Your receipt no. is 152-1880 Previous Tries 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)? Submit Answer Incorrect. Tries 1/2 Previous Tries

Explanation / Answer

Requirement 1: Direct Labor Static Budget: A Budgeted Labor Hours per unit 3 B Budgeted Production 5500 C Total Budgeted Labor Hours (A*B) 16500 D Budgeted Hourly Wage Rate 14 E Budgeted Direct Labor (C*D) 231000 Requirement 2: Direct Labor Flexible Budget Variance: A Budgeted Labor Hours per unit 3 B Actual Production 6660 C Standard Labor Hours (A*B) 19980 D Budgeted Hourly Wage Rate 14 E Standard Direct Labor (C*D) 279720 F Actual Labor Hours Per unit 2.8 G Total Actual Labor Hours (B*F) 18648 H Actual Hourly Wage Rate 14.3 I Actual Direct Labor (G*H) 266666.4 J Direct Labor Flexible Budget Variance (E-I) 13054 Direct Labor Flexible Budget Variance 13054 F

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