Actual production during April was 26,400 boxes and actual direct labor cost was

ID: 2371091 • Letter: A

Question

Actual production during April was 26,400 boxes and actual direct labor cost was $22,850.

Required:

For the following task, round your answers to two decimal places, if required.

Prepare a flexible budget for Honolulu Hello that shows the projected direct labor cost and any difference between the budget and actual labor cost. For negative numbers, use a minus sign. (Example: -300)

Flexible Budget Actual Difference Production (boxes) --- Direct labor per box mins Direct labor hours needed hrs Direct labor cost per hour x $ Direct labor cost $ $ $

Explanation / Answer

Particulars

Flexible Budget

Actual

Difference

Production (Boxes)

26400

Direct labor per box

4 minutes

Direct labor hours needed

1759.99 hours

1600 hours

Direct labor cost per hour

$12.50

$14.28

$1.78

Direct labor Cost

$21999.88

$22850

$850.12

Conclusion : There is increase in Direct labor cost per hour and Total Direct Labor Cost