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Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.5 ounces $ 2.00 per ounce $ 13.00 Direct labor 0.8
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | ||||||
Direct materials | 6.5 | ounces | $ | 2.00 | per ounce | $ | 13.00 | |
Direct labor | 0.8 | hours | $ | 18.00 | per hour | $ | 14.40 | |
Variable overhead | 0.8 | hours | $ | 2.00 | per hour | $ | 1.60 | |
The company reported the following results concerning this product in February.
Originally budgeted output | 4,600 | units | |
Actual output | 5,300 | units | |
Raw materials used in production | 30,500 | ounces | |
Actual direct labor-hours | 2,110 | hours | |
Purchases of raw materials | 32,900 | ounces | |
Actual price of raw materials | $ | 97.10 | per ounce |
Actual direct labor rate | $ | 87.60 | per hour |
Actual variable overhead rate | $ | 1.50 | 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 variable overhead rate variance for February is:
Multiple Choice
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$1,055 F
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$1,060 F
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$1,055 U
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$1,060 U
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