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Oddo Corporation makes a product with the following standard costs: Quantity/Hours Price/Rate Cost Per Unit Direct Materials 3.0 ounces 7 per ounce 21.00 Direct Labor

Oddo Corporation makes a product with the following standard costs:

Quantity/Hours Price/Rate Cost Per Unit

Direct Materials 3.0 ounces 7 per ounce 21.00

Direct Labor 0.7 hour 20.00 per hour 14.00

Variable Overhead 0.7 hours 5 per hours 3.50

The company reported the following results concerning this product in December.

Originally budgeted output 4,400 units

Actual output 4,200 units

Raw materials used in production 12,820 ounces

Actual direct labor hours 3,160 hours

Purchases of raw materials 14,500 ounces

Actual price of raw materials 6.80 per ounce

Actual direct labor rate 18.30 per hour

Actual variable overhead rate 5.10 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 December is:

$2,520 U

$2,520 F

$2,900 F

$2,900 U

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