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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 | 5.4 grams | $8.00 per gram | $43.20 |
Direct labor | 0.9 hours | $19.00 per hour | $17.10 |
Variable overhead | 0.9 hours | $8.00 per hour | $7.20 |
The company reported the following results concerning this product in June. |
Originally budgeted output | 5,600 | units |
Actual output | 5,500 | units |
Raw materials used in production | 28,480 | grams |
Actual direct labor-hours | 4,700 | hours |
Purchases of raw materials | 32,800 | grams |
Actual price of raw materials purchased | $8.10 | per gram |
Actual direct labor rate | $19.90 | per hour |
Actual variable overhead rate | $7.70 | 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 labor efficiency variance for June is: |
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