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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 5.5
Gilder Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |
Direct materials | 5.5 grams | $4.00 per gram | $22.00 |
Direct labor | 0.7 hours | $10.00 per hour | $7.00 |
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 | 5,700 | units |
Actual output | 5,600 | units |
Raw materials used in production | 28,490 | grams |
Purchases of raw materials | 32,900 | grams |
Actual direct labor-hours | 3,500 | hours |
Actual cost of raw materials purchases | $134,890 | |
Actual direct labor cost | $38,150 | |
Actual variable overhead cost | $30,450 |
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: -$4,578 U -$4,200 U -$4,578 F -$4,200 F |
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