Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hurren Corporation makes a product with the following standard costs: Inputs Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials
Hurren Corporation makes a product with the following standard costs: |
Inputs | Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit |
Direct materials | 5.3 grams | $7.00 per gram | $37.10 |
Direct labor | 0.8 hours | $18.00 per hour | $14.40 |
Variable overhead | 0.8 hours | $7.00 per hour | $5.60 |
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 | 28,470 | grams |
Actual direct labor-hours | 4,400 | hours |
Purchases of raw materials | 32,700 | grams |
Actual price of raw materials purchased | $7.10 | per gram |
Actual direct labor rate | $18.90 | per hour |
Actual variable overhead rate | $6.70 | per hour |
The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased. |
The variable overhead rate variance for June is |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started