Question
Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 10.00
Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 10.00 grams $4.00 per gram $40.00 Direct labor 0.1 hours $17.00 per hour $1.70 Variable overhead 0.1 hours $4.00 per hour $0.40 The company reported the following results concerning this product in June. Originally budgeted output 8,700 units Actual output 8,800 units Raw materials used in production 41,600 grams Purchases of raw materials 48,900 grams Actual direct labor-hours 730 hours Actual cost of raw materials purchases $263,790 Actual direct labor cost $8,403 Actual variable overhead cost $3,378 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: $4,024 F $4,007 F $4,024 U $4,007 U
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