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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 9

Hurren Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost per Unit
Direct materials 9 grams $4 per gram $36
Direct labor 0.3 hours $14 per hour $4.20
Variable overhead 0.3 hours $6 per hour $1.80

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

Originally budgeted output 7,200 units
Actual output 7,300 units
Raw materials used in production 40,600 grams
Purchases of raw materials 46,900 grams
Actual direct labor hours 630 hours
Actual cost of raw materials purchases $262,290
Actual direct labor cost $8,153
Actual variable overhead cost $3,118

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 labor rate variance for June is:

A. $681 F

B. $667 F

C. $681 U

D. $667 U

Do not copy from Chegg and give complete answer with explanation

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