Tharaldson Corporation makes a product with the following standard costs: 11 Standard Quantity or Standard Cost Per Unit $38.40 Hours 1 Direct materials points 6.4 ounces Standard Price or Rate $ 6.00 per ounce $ 10.00 per hour $ 5.00 per hour Direct labor Variable overhead 0.9 hours 0.9 hours $ 9.00 $ 4.50 The company reported the following results concerning this product in June. Originally budgeted output 3,200 units Actual output 2,600 units Raw materials used in production 19,000 ounces Purchases of raw materials 21,300 ounces Actual direct labor-hours 5,500 hours Actual cost of raw materials purchases $41,700 Actual direct labor cost $ 13, 200 Actual variable overhead cost $ 3,600 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: Multiple Choice $14,160 F $4,620 U $14,160 U $4,620 F Tharaldson Corporation makes a product with the following standard costs: 12 Standard Quantity or Hours 5.7 ounces Standard Cost Per Unit $11.40 1 Direct materials points Standard Price or Rate $ 2.00 per ounce $11.00 per hour $ 6.00 per hour Direct labor Variable overhead 0.2 hours 0.2 hours $ 2.20 $ 1.20 The company reported the following results concerning this product in June. Originally budgeted output 3,900 units Actual output 3,500 units Raw materials used in production 22,500 ounces Purchases of raw materials 22,800 ounces Actual direct labor-hours 530 hours Actual cost of raw materials purchases $42,600 Actual direct labor cost $ 13,900 Actual variable overhead cost $ 3,950 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 labor efficiency variance for June is: Multiple Choice $2,750 F $1,870 U $2,750 U $1,870 F Tharaldson Corporation makes a product with the following standard costs: 13 Standard Quantity or Hours 5.4 ounces Standard Cost Per Unit $ 16.20 1 Direct materials points Standard Price or Rate $ 3.00 per ounce $12.00 per hour $ 9.00 per hour Direct labor Variable overhead 0.5 hours 0.5 hours $ 6.00 $ 4.50 The company reported the following results concerning this product in June. Originally budgeted output 4,200 units Actual output 4,200 units Raw materials used in production 24,000 ounces Purchases of raw materials 24,900 ounces Actual direct labor-hours 560 hours Actual cost of raw materials purchases $ 42,900 Actual direct labor cost $14,200 Actual variable overhead cost $ 4,100 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 labor rate variance for June is: Multiple Choice $1,394 F $7,480 F $1,394 U $7,480 U Doogan Corporation makes a product with the following standard costs: 14 1 Standard Quantity or Standard Price or Hours Rate 7.8 grams $ 2.40 per gram 0.5 hours $24.00 per hour 0.5 hours $ 7.40 per hour points Direct materials Direct labor Variable overhead The company produced 5,600 units in January using 39,710 grams of direct material and 2,420 direct labor-hours. During the month, the company purchased 44,800 grams of the direct material at $2.10 per gram. The actual direct labor rate was $23.30 per hour and the actual variable overhead rate was $7.20 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 January is: Multiple Choice $484 U $560 F $484 F $560 U Majer Corporation makes a product with the following standard costs: 15 1 Standard Quantity or Hours 6.4 ounces 0.6 hours 0.6 hours Standard Cost Per Unit $ 19.20 $ 9.60 $ 1.80 Standard Price or Rate $ 3.00 per ounce $ 16.00 per hour $ 3.00 per hour Direct materials Direct labor Variable overhead points The company reported the following results concerning this product in February. Originally budgeted output 4,400 units Actual output 5,500 units Raw materials used in production 30,700 ounces Actual direct labor-hours 1,790 hours Purchases of raw materials 34,600 ounces Actual price of raw materials ounce Actual direct labor rate $107.60 per hour Actual variable overhead rate $ 6.30 per hour $117.10 per 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 February is: Multiple Choice $13,500F $13,437 F $13,500 U O $13,437 U 16 Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: 1 points Standard Cost $ 18.12 Standard Quantity 2.5 pounds Direct materials Standard Price or Rate $ 7.25 per pound $23.00 per hour $ 5.50 Direct labor Variable manufacturing overhead 0.5 hours 0.5 hours $11.50 $ 2.75 per hour During March, the following activity was recorded by the company: The company produced 6,400 units during the month. A total of 20,200 pounds of material were purchased at a cost of $56,560. There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,040 pounds of material remained in the warehouse. During March, 3,400 direct labor-hours were worked at a rate of $23.50 per hour. Variable manufacturing overhead costs during March totaled $9,550. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is: Multiple Choice $1,160 F $32,160 F $32,160 U $1,160 U Juhasz Corporation makes a product with the following standards for direct labor and variable overhead: 17 Standard Quantity Standard Price or or Hours Rate 0.50 hours $ 33.00 per hour 0.50 hours $ 5.30 per hour 1 Direct labor Variable overhead points In August the company produced 9,200 units using 4,720 direct labor-hours. The actual variable overhead cost was $23,600. The company applies variable overhead on the basis of direct labor-hours. The variable overhead efficiency variance for August is: Multiple Choice $636 U $600 U $600 F O $636 F Irving Corporation makes a product with the following standards for direct labor and variable overhead: 18 Standard Quantity Standard Price or or Hours Rate 0.2 hours $21.00 per hour 0.2 hours $ 5.70 per hour Standard Cost Per Unit $ 4.20 $1.14 Direct labor Variable overhead points In November the company's budgeted production was 6,000 units, but the actual production was 5,800 units. The company used 1,500 direct labor-hours to produce this output. The actual variable overhead cost was $7,950. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for November is: Multiple Choice $464 U $600 U $600 F O $464 F 19 A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. 1 2.90 DLHS Standard hours per unit of output Standard variable overhead rate points $10.65 per DLH The following data pertain to operations for the last month: 9,700 DLHS Actual direct labor-hours Actual total variable manufacturing overhead cost Actual output $ 95, 750 2,400 units What is the variable overhead rate variance for the month? Multiple Choice $7,836 U $7,555 U $7,836 F $7,555 F 20 Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.10 hours per unit. The variable overhead rate standard is $9.40 per hour. In January the company produced 8,000 units using 840 direct labor-hours. The actual variable overhead rate was $9.30 per hour. 1 The variable overhead efficiency variance for January is: points Multiple Choice $376 F $372 U $376 U $372 F