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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 7.6
Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||||
Direct materials | 7.6 | ounces | $ | 4.00 | per ounce | $ | 30.40 | ||
Direct labor | 0.5 | hours | $ | 10.00 | per hour | $ | 5.00 | ||
Variable overhead | 0.5 | hours | $ | 9.00 | per hour | $ | 4.50 | ||
The company reported the following results concerning this product in June.
Originally budgeted output | 3,000 | units | |
Actual output | 3,100 | units | |
Raw materials used in production | 16,300 | ounces | |
Purchases of raw materials | 17,400 | ounces | |
Actual direct labor-hours | 510 | hours | |
Actual cost of raw materials purchases | $ | 45,000 | |
Actual direct labor cost | $ | 13,000 | |
Actual variable overhead cost | $ | 3,500 | |
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 efficiency variance for June is:
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