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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 6.10
Gilder Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | ||||||
Direct materials | 6.10 | grams | $ | 5.00 | per gram | $ | 30.50 | |
Direct labor | 0.20 | hours | $ | 11.00 | per hour | $ | 2.20 | |
Variable overhead | 0.20 | hours | $ | 4.00 | per hour | $ | 0.80 | |
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The company reported the following results concerning this product in June:
Originally budgeted output | 3,100 | units |
Actual output | 3,180 | units |
Raw materials used in production | 18,508 | grams |
Purchases of raw materials | 21,108 | grams |
Actual direct labor-hours | 560 | hours |
Actual cost of raw materials purchases | $99,210 | |
Actual direct labor cost | $5,757 | |
Actual variable overhead cost | $1,594 | |
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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 quantity variance for June is:
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