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Tharaldson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 5.8 ounces 0.9 hours 0.9
Tharaldson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 5.8 ounces 0.9 hours 0.9 hours Standard Price or Rate $ 3.00 per ounce $ 12.00 per hour $ 5.00 per hour Standard Cost Per Unit $ 17.40 $ 10.80 $ 4.50 The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 3,800 units 3,400 units 22,000 ounces 22,500 ounces 6,500 hours $ 42,500 $ 13,800 $ 3,900 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 June is: Multiple Choice $25,000 F $25,000 U $2,025 F O a O $2,025 U
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