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Gilder Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Standard Price or Hours Rate 4.8
Gilder Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Standard Price or Hours Rate 4.8 grams $7.00 per gram 0.8 hours $13.00 per hour 0.8 hours $8.00 per hour Standard Cost Per Unit $33.60 $10.40 $6.40 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 6,200 units 6,100 units 28,420 grams 32,200 grams 4,800 hours $228,620 $66,720 $36,960 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 rate variance for June is: $1,440 F $1,464 U O $1,464 F O $1,440 U
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