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Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials6.2ounces$ 7.00per ounce$ 43.40Direct labor0.7hours$
Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials6.2ounces$ 7.00per ounce$ 43.40Direct labor0.7hours$ 10.00per hour$ 7.00Variable overhead0.7hours$ 7.00per hour$ 4.90
The company reported the following results concerning this product in June.
Originally budgeted output3,400unitsActual output2,800unitsRaw materials used in production20,000ouncesPurchases of raw materials21,100ouncesActual direct labor-hours4,500hoursActual cost of raw materials purchases$ 41,900 Actual direct labor cost$ 13,400 Actual variable overhead cost$ 3,700
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
$18,480 F
$5,242 U
$18,480 U
$5,242 F
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