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Question: flexible budget performance report difference budget actualfavorable f unfavorable u...

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Flexible Budget Performance Report Difference Budget ActualFavorable (F Unfavorable (U) Production in units 18,000 18,000 Direct labor Direct labor hours (1 hour/lunit) 18,000 18.200 200 (U) Direct labor costs ($20/hour) $360,000 $354,900 $5,100 (F) Direct Materials Quantity (.5/unit) Dollars ($20/unit) 9,000 9,300 300 (U) $360,000 $375.000 $15,000 (U) Variable costs Indirect materials Indirect labor Utilities Total variable costs 720,000 700.000 20,000 (F) 324,000 288,000 36,000 (F) 198,000 176,000 22,000 (F) 242,000 1,164,00 78.000 (F) Fixed costs Depreciation Property taxes Supervision Total fixed costs Total costs 300,000 300,000 50,000 50.000 0 120,000 120,0000 470,000 470,000 0 1.712,000 1,634,000 78,000 (F) 0 0 What is an explanation for the companys direct labor variance? .
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