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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 5.2 grams $6.00 per gram $31.20
Direct labor 0.7 hours $17.00 per hour $11.90
Variable overhead 0.7 hours $6.00 per hour $4.20

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

Originally budgeted output 5,800 units
Actual output 5,700 units
Raw materials used in production 28,460 grams
Actual direct labor-hours 3,800 hours
Purchases of raw materials 32,600 grams
Actual price of raw materials purchased $6.10 per gram
Actual direct labor rate $17.90 per hour
Actual variable overhead rate $5.70 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 rate variance for June is: (Round your intermediate calculations to 2 decimal places.)

$3,420 U
$3,591 U
$3,420 F
$3,591 F

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