Question
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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