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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 2.0
Majer Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||
---|---|---|---|---|---|
Direct materials | 2.0 | ounces | $ 11.00 | per ounce | $ 22.00 |
Direct labor | 0.7 | hours | $ 17.00 | per hour | $ 11.90 |
Variable overhead | 0.7 | hours | $ 9.50 | per hour | $ 6.65 |
The company reported the following results concerning this product in February.
Originally budgeted output | 10,400 | units |
---|---|---|
Actual output | 10,200 | units |
Raw materials used in production | 15,600 | ounces |
Actual direct labor-hours | 7,340 | hours |
Purchases of raw materials | 17,200 | ounces |
Actual price of raw materials | $ 10.75 | per ounce |
Actual direct labor rate | $ 15.90 | per hour |
Actual variable overhead rate | $ 8.15 | 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 price variance for February is:
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