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Acme Company’s production budget for August is 18,900 units and includes the following component unit costs:...

Acme Company’s production budget for August is 18,900 units and includes the following component unit costs: direct materials, $7.20; direct labor, $11.40; variable overhead, $5.40. Budgeted fixed overhead is $46,000. Actual production in August was 21,840 units. Actual unit component costs incurred during August include direct materials, $9.60; direct labor, $10.80; variable overhead, $6.20. Actual fixed overhead was $48,900.

Required:
Prepare a performance report, including each cost component. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Original Budget Flexed Budget Actual Cost Budget Variance
Cost component (18,900 units) (21,840 units) (21,840 units)
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total Budgeted Cost $ $ $

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Original Budget Flexible Budget Actual cost Budget Variance
Cost component         18,900         21,840        21,840
Direct Material $ 1,36,080 $ 1,57,248 $2,09,664 $    52,416 U
Direct Labor $ 2,15,460 $ 2,48,976 $2,35,872 $    13,104 F
Variable overhead $ 1,02,060 $ 1,17,936 $1,35,408 $    17,472 U
Fixed overhead $     46,000 $     46,000 $    48,900 $      2,900 U
Total Budgeted cost $ 4,99,600 $ 5,70,160 $6,29,844 $    59,684 U


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