In Rooney Company, direct labor is $17 per hour. The company expects to operate

Question

In Rooney Company, direct labor is $17 per hour. The company expects to operate at 12,000 direct labor hours each month. In January 2017, direct labor totaling $218,000 is incurred in working 12,500 hours Prepare a static budget report. ROONEY COMPANY Static Direct Labor Budget Report For the Month Ended January 31, 2017 Product Line Budget Actual Difference Direct Labor LINK TO TEXT INTERACTIVE TUTORIAL Prepare a flexible budget report. ROONEY COMPANY Flexible Direct Labor Budget Report For the Month Ended January 31, 2017 Difference Product Line Direct Labor

Explanation / Answer

Rooney Company Static Direct Labour Budget Report For the month of ended January 31, 2017 Product Line Budget Actual Difference Direct Labour 204000 218000 -14000 Unfavourable (12000*17) (204000-218000) Rooney Company Flexible Direct Labour Budget Report For the month of ended January 31, 2017 Product Line Budget Actual Difference Direct Labour 212500 218000 -5500 Unfavourable (12500*17) (212500-218000)

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