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Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.3
Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||
---|---|---|---|---|---|
Direct materials | 7.3 | ounces | $ 3.00 | per ounce | $ 21.90 |
Direct labor | 0.2 | hours | $ 17.00 | per hour | $ 3.40 |
Variable overhead | 0.2 | hours | $ 6.00 | per hour | $ 1.20 |
The company reported the following results concerning this product in June.
Originally budgeted output | 2,700 | units |
---|---|---|
Actual output | 2,800 | units |
Raw materials used in production | 18,500 | ounces |
Purchases of raw materials | 21,600 | ounces |
Actual direct labor-hours | 480 | hours |
Actual cost of raw materials purchases | $ 42,100 | |
Actual direct labor cost | $ 12,700 | |
Actual variable overhead cost | $ 3,350 |
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 efficiency variance for June is:
Multiple Choice
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$496 F
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$480 U
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$496 U
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$480 F
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