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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 | 3.7 grams | $5.00 per gram | $18.50 |
Direct labor | 0.9 hours | $12.00 per hour | $10.80 |
Variable overhead | 0.9 hours | $5.00 per hour | $4.50 |
The company reported the following results concerning this product in June. |
Originally budgeted output | 8,000 | units |
Actual output | 7,900 | units |
Raw materials used in production | 28,310 | grams |
Actual direct labor-hours | 6,500 | hours |
Purchases of raw materials | 31,100 | grams |
Actual price of raw materials purchased | $5.10 | per gram |
Actual direct labor rate | $12.90 | 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 variable overhead efficiency variance for June is: |
$2,867 U | |
$3,050 U | |
$2,867 F | |
$3,050 F |
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