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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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