Question
Oddo Corporation makes a product with the following standard costs: Standard Quanity/hours Standard Price/rate Standard cost per unit Direct material 3.0 ounces $7 per ounce
Oddo Corporation makes a product with the following standard costs:
Standard Quanity/hours Standard Price/rate Standard cost per unit
Direct material 3.0 ounces $7 per ounce $21
Direct Labor 0.7 hours $20 per hour $14
Variable overhead 0.7 hours $5 $3.5
The company reported the following results concerning this product in December
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
Originally budgeted output 4400 units
Actual output 4200 units
Raw materials used inproduction 12820 ounces
actual direct labor hours 3160 hours
purchases of raw material $6.8 per ounce
actual direct labor rate $18.30 per hour
Actual variable overhead rate $5.10 per hour
The labor efficiency variance for December is:
$4,026 F | ||
$4,026 U | ||
$4,400 F | ||
$4,400 U |
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