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11. Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials

11. Hurren Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
Direct materials 3.8 grams $4.00 per gram $15.20
Direct labor 0.8 hours $10.00 per hour $8.00
Variable overhead 0.8 hours $4.00 per hour $3.20

The company reported the following results concerning this product in June.

Originally budgeted output 7,700 units
Actual output 7,600 units
Raw materials used in production 28,320 grams
Actual direct labor-hours 5,500 hours
Purchases of raw materials 31,200 grams
Actual price of raw materials purchased $4.10 per gram
Actual direct labor rate $10.90 per hour
Actual variable overhead rate $3.70 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The labor efficiency variance for June is:

A. $6,322 U

B. $5,800 U

C. $6,322 F

D. $5,800 F

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