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Question: jaunty coffee company flexible budget performance report difference favorablef unfavorableu...

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Jaunty Coffee Company Flexible Budget Performance Report Difference Favorable-F Unfavorable-U BudgetActual Production in units 32,000 32,000 Direct Labor Direct labor hours (1 hour/unit) Direct labor costs ($15/hour) 11,500 500 12,000 $180,000 $168,000 12,000 Direct Materials Quantity (2/unit) Dollars ($30/unit) 24,000 23,200 800 $360,000 $358,000$2,000 Variable Costs Indirect materials indirect labor Utilities Total variable costs 180,000 215,000 35,000 19,000109,000 10,000 147,000 51,000 29,000 446,000475,000 29,000 Fixed Costs Depreciation Property taxes Supervision Total fixed costs Total costs 80,000 10,000 160,000160,000 250,000 250,000 0 1,236,000 1,251,000 15,000 80.000 10,000
Variable Costs Indirect materials Indirect labor Utilities Total variable costs 180,000 119,000 147,000 215,000 109,000 151,000 35 10 446,000 475,0002 Fixed Costs Depreciation Property taxes Supervisiorn Total fixed costs Total costs 80,000 80,000 10,000 160,000 10,000 160,000 250,000 250,000 0 1,236,000 1,251,000 1 What is an explanation for the companys direct materials variance? The companys direct labor was less efficient. C) The company produced more units than planned. O The company overused indirect materials. O The company negotiated a lower price.
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