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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 | 4.3 grams | $6.00 per gram | $25.80 |
Direct labor | 1.8 hours | $18.00 per hour | $32.40 |
Variable overhead | 1.8 hours | $5.00 per hour | 9.00 |
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 | 4,400 | hours |
Purchases of raw materials | 31,700 | grams |
Actual price of raw materials purchased | $6.10 | per gram |
Actual direct labor rate | $18.90 | 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 price variance is computed when the materials are purchased. |
The materials price variance for June is: (Round your intermediate calculations to 2 decimal places.) |
$3,170 U | |
$2,858 F | |
$2,858 U | |
$3,170 F |
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