36.

MC Qu. 109 Hurren Corporation makes a product with the following standard costs:

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	3.3 grams	$3.00 per gram	$9.90
Direct labor	0.7 hours	$12.00 per hour	$8.40
Variable overhead	0.7 hours	$9.00 per hour	$6.30

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

Originally budgeted output	8,600	units
Actual output	8,500	units
Raw materials used in production	27,000	grams
Actual direct labor-hours	5,300	hours
Purchases of raw materials	30,700	grams
Actual price of raw materials purchased	$3.10	per gram
Actual direct labor rate	$12.90	per hour
Actual variable overhead rate	$8.70	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 variable overhead rate variance for June is:

	$1,785 U
	$1,590 U
	$1,590 F
	$1,785 F