Question
Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 3.5
Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 3.5 grams $7.00 per gram $24.50 Direct labor 0.7 hours $10.00 per hour $7.00 Variable overhead 0.7 hours $7.00 per hour $4.90 The company reported the following results concerning this product in June. Originally budgeted output 8,400 units Actual output 8,300 units Raw materials used in production 28,290 grams Actual direct labor-hours 5,500 hours Purchases of raw materials 30,900 grams Actual price of raw materials purchased $7.10 per gram Actual direct labor rate $10.90 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 purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for June is:
The variable overhead efficiency variance for June is: |
$2,077 F
$2,170 U
$2,077 U
$2,170 F
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