Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.6

Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
Direct materials 5.6 ounces $ 7.00 per ounce $ 39.20
Direct labor 0.7 hours $ 10.00 per hour $ 7.00
Variable overhead 0.7 hours $ 7.00 per hour $ 4.90

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

Originally budgeted output 4,000 units
Actual output 4,000 units
Raw materials used in production 23,000 ounces
Purchases of raw materials 20,500 ounces
Actual direct labor-hours 5,500 hours
Actual cost of raw materials purchases $ 42,500
Actual direct labor cost $ 14,000
Actual variable overhead cost $ 4,000

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 quantity variance for June is:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hospitality Financial Accounting

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Agnes L.

2nd Edition

9780470598092, 470083603, 978-0470083604

More Books

Students also viewed these Accounting questions

Question

5. How can we use language to enhance skill in perceiving?

Answered: 1 week ago

Question

What actions might have prevented Bobs resignation?

Answered: 1 week ago