Answered step by step
Verified Expert Solution
Link Copied!

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 5.4 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:

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

Step: 3

blur-text-image

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

Portfolio Of Business And Management Audits

Authors: Baumhardt And Partner

1st Edition

3908131006, 978-3908131007

More Books

Students also viewed these Accounting questions

Question

1. What are the pros and cons of diversity for an organisation?

Answered: 1 week ago

Question

1. Explain the concept of diversity and equality in the workplace.

Answered: 1 week ago