Business, 12.08.2020 04:01 eraines1714

Acme Company’s production budget for August is 17,800 units and includes the following component unit costs: direct materials, $6.00; direct labor, $10.00; variable overhead, $6.00. Budgeted fixed overhead is $35,000. Actual production in August was 19,368 units, actual unit component costs incurred during August include direct materials, $8.10; direct labor, $9.50; variable overhead, $7.50. Actual fixed overhead was $36,800, the standard direct labor cost per unit consists of 0.5 hour of labor time at $20.0 per hour. During August, $183,996 of actual labor cost was incurred for 8,070 direct labor hours. Required: Calculate the labor rate variance and labor efficiency variance for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

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Acme Company’s production budget for August is 17,800 units and includes the following component uni...