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33. Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials
33.
Gilder Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | ||||||
Direct materials | 7.90 | grams | $ | 10.00 | per gram | $ | 79.00 | |
Direct labor | 0.15 | hours | $ | 28.00 | per hour | $ | 4.20 | |
Variable overhead | 0.15 | hours | $ | 8.00 | per hour | $ | 1.20 | |
|
The company reported the following results concerning this product in June:
Originally budgeted output | 4,800 | units |
Actual output | 5,040 | units |
Raw materials used in production | 37,492 | grams |
Purchases of raw materials | 41,792 | grams |
Actual direct labor-hours | 670 | hours |
Actual cost of raw materials purchases | $392,840 | |
Actual direct labor cost | $18,164 | |
Actual variable overhead cost | $3,028 | |
|
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 quantity variance for June is:
rev: 11_26_2016_QC_CS-71059
$240 U
$22,980 F
$23,240 U
$23,240 F
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