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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 5.9
Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||
---|---|---|---|---|---|
Direct materials | 5.9 | ounces | $ 2.00 | per ounce | $ 11.80 |
Direct labor | 0.4 | hours | $ 10.00 | per hour | $ 4.00 |
Variable overhead | 0.4 | hours | $ 4.00 | per hour | $ 1.60 |
The company reported the following results concerning this product in June.
Originally budgeted output | 3,700 | units |
---|---|---|
Actual output | 3,300 | units |
Raw materials used in production | 21,500 | ounces |
Purchases of raw materials | 22,000 | ounces |
Actual direct labor-hours | 510 | hours |
Actual cost of raw materials purchases | $ 42,400 | |
Actual direct labor cost | $ 13,700 | |
Actual variable overhead cost | $ 3,750 |
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 June is:
Multiple Choice
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$1,722 U
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$1,722 F
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$1,710 F
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$1,710 U
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