In Rooney Company, direct labor is $22 per hour. The company expects to operate

Question

In Rooney Company, direct labor is $22 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2017, direct labor totaling $235,700 is incurred in working 12,100 hours.

ROONEY COMPANY
Static Direct Labor Budget Report
For the Month Ended January 31, 2017

Direct Labor

ROONEY COMPANY
Flexible Direct Labor Budget Report
For the Month Ended January 31, 2017

Direct Labor

In Rooney Company, direct labor is $22 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2017, direct labor totaling $235,700 is incurred in working 12,100 hours.

Explanation / Answer

STATIC BUDGET REPORT

ROONEY COMPANY
Static Direct Labor Budget Report
For the Month Ended January 31, 2017

Product Line

Budget

Actual

Difference

Direct Labor   

**$ 220000

$ 235700

$ 15700 Unfavorable

*** 10000 HOUR X $ 22/HOUR = $ 220000

FLEXIBLE BUDGET REPORT

ROONEY COMPANY
Flexible Direct Labor Budget Report
For the Month Ended January 31, 2017

Product Line

Budget

Actual

Difference

Direct Labor

$ 266200

$ 235700

$ 30,500

Favorable

*** 12100 HOURS x $ 22/HOUR = $ 266200

ROONEY COMPANY
Static Direct Labor Budget Report
For the Month Ended January 31, 2017

Product Line

Budget

Actual

Difference

Direct Labor   

**$ 220000

$ 235700

$ 15700 Unfavorable

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.