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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 6.5
Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||
---|---|---|---|---|---|
Direct materials | 6.5 | ounces | $ 2.00 | per ounce | $ 13.00 |
Direct labor | 0.2 | hours | $ 23.00 | per hour | $ 4.60 |
Variable overhead | 0.2 | hours | $ 6.00 | per hour | $ 1.20 |
The company reported the following results concerning this product in June.
Originally budgeted output | 2,700 | units |
---|---|---|
Actual output | 2,800 | units |
Raw materials used in production | 19,380 | ounces |
Purchases of raw materials | 21,400 | ounces |
Actual direct labor-hours | 500 | hours |
Actual cost of raw materials purchases | $ 40,660 | |
Actual direct labor cost | $ 12,050 | |
Actual variable overhead cost | $ 3,100 |
The company applies variable overhead on the basis of direct labor-hours.
The variable overhead Efficiency variance for June is:
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