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 5.2
Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.2 grams $6.00 per gram $31.20 Direct labor 0.7 hours $17.00 per hour $11.90 Variable overhead 0.7 hours $6.00 per hour $4.20 The company reported the following results concerning this product in June. Originally budgeted output 5,800 units Actual output 5,700 units Raw materials used in production 28,460 grams Actual direct labor-hours 3,800 hours Purchases of raw materials 32,600 grams Actual price of raw materials purchased $6.10 per gram Actual direct labor rate $17.90 per hour Actual variable overhead rate $5.70 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. The labor efficiency variance for June is: $3,401 U $3,230 U $3,401 F $3,230 F
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