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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 4.3
Hurren Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost per Unit | |
---|---|---|---|
Direct materials | 4.3 grams | $6 per gram | $25.80 |
Direct labor | 0.9 hours | $10 per hour | $9 |
Variable overhead | 0.9 hours | $5 per hour | $4.50 |
The company reported the following results concerning this product in June.
Originally budgeted output | 7,000 units |
Actual output | 6,900 units |
Raw materials used in production | 28,370 grams |
Actual direct labor hours | 5,500 hours |
Purchases of raw materials | 31,700 grams |
Actual price of raw materials purchased | $6.10 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 variable overhead efficiency variance for June is:
A. $3,337 F
B. $3,550 U
C. $3,337 U
D. $3,550 F
Do not copy from Chegg and give complete answer with explanation
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