2 HW Questions : 1)

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost PerUnit
Direct materials	9.10 grams	$7.00 per gram	$63.70
Direct labor	0.4 hours	$15.00 per hour	$6.00
Variable overhead	0.4 hours	$7.00 per hour	$2.80

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

Originallybudgetedoutput	7,100	units
Actual output	7,200	units
Raw materials used in production	40,700	grams
Purchases of raw materials	47,100	grams
Actual direct labor-hours	640	hours
Actual cost of raw materials purchases	$262,440
Actual direct labor cost	$8,178
Actual variable overhead cost	$3,144

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 rate variance for June is:

$1,437 F$1,422 F$1,437 U$1,422 U

2)

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost PerUnit
Direct materials	5.1 grams	$5.00 per gram	$25.50
Direct labor	1.4 hours	$16.00 per hour	$22.40
Variable overhead	1.4 hours	$5.00 per hour	$7.00

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

Originallybudgetedoutput	6,000	units
Actual output	5,900	units
Raw materials used in production	28,450	grams
Actual direct labor-hours	5,200	hours
Purchases of raw materials	32,500	grams
Actual price of raw materials purchased	$5.10	per gram
Actual direct labor rate	$16.90	per hour
Actual variable overhead rate	$4.70	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 materials price variance for June is:

$2,864 U $2,864 F $3,250 U $3,250 F