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Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 4.6
Gilder Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |
Direct materials | 4.6 grams | $4.00 per gram | $18.40 |
Direct labor | 0.8 hours | $11.00 per hour | $8.80 |
Variable overhead | 0.8 hours | $6.00 per hour | $4.80 |
The company reported the following results concerning this product in June. |
Originally budgeted output | 6,800 | units |
Actual output | 6,700 | units |
Raw materials used in production | 28,400 | grams |
Purchases of raw materials | 32,000 | grams |
Actual direct labor-hours | 4,700 | hours |
Actual cost of raw materials purchases | $131,200 | |
Actual direct labor cost | $55,930 | |
Actual variable overhead cost | $26,790 |
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 efficiency variance for June is: |
$3,762 F
$3,762 U
$3,960 F
$3,960 U
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