BE21-3 In Mussatto Company, direct labor is $20 per hour. The company expects to

Question

BE21-3

In Mussatto Company, direct labor is $20 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2010, direct labor totaling $203,000 is incurred in working 10,400 hours. Complete the (a) static budget report and (b) flexible budget report.
MUSSATTO COMPANY
Static Direct Labor Budget Report
For the Month Ended January 31, 2010

Budget Actual Difference
Direct Labor $ $ $

MUSSATTO COMPANY
Flexible Direct Labor Budget Report
For the Month Ended January 31, 2010

Budget Actual Difference
Direct Labor $ $ $

Explanation / Answer

In Mussatto Company, direct labor is $20 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2010, direct labor totaling $203,000 is incurred in working 10,400 hours. Complete the (a) static budget report and (b) flexible budget report.

MUSSATTO COMPANY
Static Direct Labor Budget Report
For the Month Ended January 31, 2010

Budget

Actual

Difference

Direct Labor

200000

203000

3000

U

MUSSATTO COMPANY
Flexible Direct Labor Budget Report
For the Month Ended January 31, 2010

Budget

Actual

Difference

Direct Labor

208000

203000

5000

F

Budget

Actual

Difference

Direct Labor

200000

203000

3000

U

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