Brief Exercise 22-3 In Rooney Company, direct labor is $25 per hour. The company
ID: 2528647 • Letter: B
Question
Brief Exercise 22-3 In Rooney Company, direct labor is $25 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2017, direct labor totaling $225,300 is incurred in working 11,400 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 Labors LINK TO TEXT INTERACTIVE TUTORIAL Prepare a flexible budget report. ROONEY COMPANY Flexible Direct Labor Budget Report For the Month Ended January 31, 2017 Product Line Budget Actual Difference Direct LaborExplanation / Answer
ROONEY COMPANY
Static Direct Labor Budget Report
For the Month Ended January 31, 2017
Product Line
Budget
Actual
Difference
Direct Labor
$2,50,000*
$2,25,300
$24,700
Favorable
*10,000 x $25 = $2,50,000
ROONEY COMPANY
Flexible Direct Labor Budget Report
For the Month Ended January 31, 2017
Product Line
Budget
Actual
Difference
Direct Labor
$2,85,000*
$2,25,300
$59,700
Favorable
*11,400 x $25 = $2,85,000
ROONEY COMPANY
Static Direct Labor Budget Report
For the Month Ended January 31, 2017
Product Line
Budget
Actual
Difference
Direct Labor
$2,50,000*
$2,25,300
$24,700
Favorable