My work: 14,200/5,300 = 2.6792

14,200 -(5,300*12)

63,600 - 14,200 = 49,400

What am I doing wrong?

Tharaldson Corporation makes a product with the following standard costs Standard Quantity or Hours 5.4 ounces 0.7 hours 0.7 hours Standard Cost Per Unit $16.20 $ 8.40 $ 6.30 Standard Price or Rate $ 3.00 per ounce $ 12.00 per hour $ 9.00 per hour Direct materials Direct labor Variable overhead The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 4,200 units 4,200 units 20,400 ounces 21,500 ounces 5,300 hours $ 42,900 $ 14,200 $ 4,100 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 June is: Multiple Choice 0 $21,600 F $1,935 U $1,935 F $21,600 u