Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 4.5

Hurren Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
Direct materials 4.5 grams $5.00 per gram $22.50
Direct labor 0.8 hours $10.00 per hour $8.00
Variable overhead 0.8 hours $5.00 per hour $4.00

The company reported the following results concerning this product in June.

Originally budgeted output 6,700 units
Actual output 6,600 units
Raw materials used in production 28,390 grams
Actual direct labor-hours 4,600 hours
Purchases of raw materials 31,900 grams
Actual price of raw materials purchased $5.10 per gram
Actual direct labor rate $10.90 per hour
Actual variable overhead rate $4.70 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 materials quantity variance for June is:

$6,681 F

$6,550 F

$6,681 U

$6,550 U

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Management Audit How To Create An Effective Management Team

Authors: Michael Craig-Cooper, Philippe De Backer

1st Edition

0273600044, 978-0273600046

More Books

Students also viewed these Accounting questions