2.

Tharaldson Corporation makes a product with the following standard costs: Unit Standard Quantity or Hours 5.7 ounces 0.8 hours 0.8 hours Standard Standard Price or Cost Per Rate $ 2.00 per ounce $11.40 $11.00 per hour $ 8.80 $ 6.00 per hour $ 4.80 Direct materials Direct labor Variable overhead 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 3,900 units 3,500 units 20,700 ounces 21,800 ounces 6,000 hours $ 42,600 $ 13,900 $ 3,950 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: Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 9.5 pounds 0.8 hours 0.8 hours Standard Price or Rate $ 9.00 per pound $31.00 per hour $14.50 per hour In January the company produced 3,420 units using 13,680 pounds of the direct material and 2,856 direct labor-hours. During the month, the company purchased 14,440 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $88,125 and the actual variable overhead cost was $39,700. 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 January is: Kartman Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 7.6 pounds 0.6 hours 0.6 hours Standard Price or Rate $ 8.10 per pound $35.00 per hour $ 5.10 per hour Standard Cost Per Unit $61.56 $ 21.00 $ 3.06 In June the company's budgeted production was 4,500 units but the actual production was 4,600 units. The company used 23,250 pounds of the direct material and 2,400 direct labor-hours to produce this output. During the month, the company purchased 26,500 pounds of the direct material at a cost of $181,180. The actual direct labor cost was $58,121 and the actual variable overhead cost was $11,661. 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 variable overhead rate variance for June is