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45 Jaunty Coffee Company Flexible Budget Performance Report Difference Favorable-F Unfavorable-U BudgetAc Actual Production in units 32.000 32.000 Direct Labor Direct labor hours (1 hour/unit) Direct labor costs ($15/hour) 12,000 $180,000$168,000 $12,000 11500 500 Direct Materials Qauntity (2/unit) Dollars (530/unit) 24000 23.200 800 S360,000 $358,000 $2,000 Variable Costs Indirect materials Indirect labor Utilities Total variable costs 180,000 215,00035,000 119,000109,00010,000 147,000151.0004.000 446,000 475,000 29,000 Fixed Costs Depreciation Property taxes Supervision Total fixed costs Total costs 80,000 80.000 10,000 160,000160 0000 250,000 250,000O 1,236,0001,251,000 15.000 10,000 What is an explanation for the companys utility variance?
250,000 250,000 1,236,000 1,251,00 Total fixed costs Total costs What is an explanation for the companys utility variance? The companys labor was less efficient. O The companys utility consumption decreased O The companys utility rates increased. O The companys variable overhead decreased
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