2.

Gilder Corporation makes a product with the following standard costs: Standard Price or Rate Standard Cost Per Unit Direct materials Direct labor Variable overhead Standard Quantity or Hours 8.00 grams 0.20 hours 0.20 hours $11.00 per gram $29.00 per hour $ 9.00 per hour $88.00 $ 5.80 $ 1.80 The company reported the following results concerning this product in June: Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 4,900 units 5,160 units 39,400 grams 43,800 grams 890 hours $451,140 $25,009 $5,680 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 materials price variance for June is: O $30,660 F O $30,430 F $30,660 U O $30,430 U