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Frami Limited makes a product with the following standard costs: Standard Quantity or Standard Cost Total Cost per Unit Produced Per Ounce or Hours Hours
Frami Limited makes a product with the following standard costs: Standard Quantity or Standard Cost Total Cost per Unit Produced Per Ounce or Hours Hours Direct 6.1 ounces $5.70 per ounce $ 34.77 materials Direct labor 1.1 hours $18.00 per hour $19.80 Variable 1.2 hours $5.00 per hour $6.00 overhead Frami Limited reported the following results concerning this product in May. Originally budgeted output 5,090 units Actual output 6,100 units Raw materials used in production 34,200 ounces Actual direct labor-hours Purchases of raw materials 1,900 hours 37,300 ounces Actual price of raw materials Actual direct labor rate $6.40 per ounce $15.80 per hour Actual variable overhead rate $5.00 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 May is: A $20,888 F B $26,110 U C $20,888 U D $26,110 F
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