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Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.1
Majer Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||
---|---|---|---|---|---|
Direct materials | 6.1 | ounces | $ 3.00 | per ounce | $ 18.30 |
Direct labor | 0.6 | hours | $ 16.00 | per hour | $ 9.60 |
Variable overhead | 0.6 | hours | $ 3.00 | per hour | $ 1.80 |
The company reported the following results concerning this product in February.
Originally budgeted output | 5,000 | units |
---|---|---|
Actual output | 6,100 | units |
Raw materials used in production | 33,500 | ounces |
Actual direct labor-hours | 1,850 | hours |
Purchases of raw materials | 35,900 | ounces |
Actual price of raw materials | $ 57.10 | per ounce |
Actual direct labor rate | $ 47.60 | 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 materials quantity variance for February is:
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