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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 5.8
Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||
---|---|---|---|---|---|
Direct materials | 5.8 | ounces | $ 3.00 | per ounce | $ 17.40 |
Direct labor | 0.5 | hours | $ 12.00 | per hour | $ 6.00 |
Variable overhead | 0.5 | hours | $ 5.00 | per hour | $ 2.50 |
The company reported the following results concerning this product in June.
Originally budgeted output | 3,800 | units |
---|---|---|
Actual output | 3,400 | units |
Raw materials used in production | 20,800 | ounces |
Purchases of raw materials | 21,900 | ounces |
Actual direct labor-hours | 520 | hours |
Actual cost of raw materials purchases | $ 42,500 | |
Actual direct labor cost | $ 13,800 | |
Actual variable overhead cost | $ 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 variable overhead efficiency variance for June is:
A) 5900 F
B) 6490 U
C) 5900 U
D) 6490 F
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