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Hurren Corporation makes a product with the following standard costs: Inputs Standard Quantity Standard Price Standard Cost or hours or rate per unit Direct Materials
Hurren Corporation makes a product with the following standard costs: Inputs Standard Quantity Standard Price Standard Cost or hours or rate per unit Direct Materials 4.4 Grams $8.00 per gram $35.20 Direct Labor 0.7 hours $19.00 per hour $13.30 Variable Overhead 0.7 hours $4.00 per hour $2.80 The company reported the following results concerning this product in June. Originally budgeted output...............................6,600 units Actual output....................................................6,500 units Raw materials used in production....................28,380 grams Actual direct labor-hours..................................4,500 hours Purchases of raw materials..............................31,800 grams Actual price of raw materials purchased..........$8.10 per gram Actual direct labor rate.....................................$19.90 per hour Actual variable overhead rate..........................$3.70 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. 1. The materials quantity variance for June is: A. $1,760 B. $1,782 C. $1,760 D. $1,782 2. The materials price variance for June is: A. $3,180 U B. $2,860 F C. $2,860 U D. $3,180 F 3.The labor efficiency variance for June is: A.$995 B.$950 C.$995 D.$950 4.The labor rate variance for June is: A. $4,095 B. $4,050 C. $4,095 D. $4,050 5. The variable overhead efficiency variance for June is: A. $185 F B. $200 U C. $185 U D. $200 F 6.The variable overhead rate variance for June is: A. $1,365 U B. $1,365 F C. $1,350 F D. $1,350 U
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