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Gilder Corporation makes a product with the following standard costs: Standard Price or Rate Standard Cost Per Unit Direct materials Direct labor Variable overhead Standard
Gilder Corporation makes a product with the following standard costs: Standard Price or Rate Standard Cost Per Unit Direct materials Direct labor Variable overhead Standard Quantity or Hours 6.40 grams 0.35 hours 0.35 hours $8.00 per gram $14.00 per hour $ 7.00 per hour $51.20 $ 4.90 $ 2.45 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 3,400 units 3,540 units 20,524 grams 23,424 grams 1,040 hours $173,340 $13,780 $6,553 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 efficiency variance for June is: $140 U $2,758 F $2,758 U $2,786 F
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