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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
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