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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 5.3
Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||||
Direct materials | 5.3 | ounces | $ | 4.00 | per ounce | $ | 21.20 | ||
Direct labor | 0.8 | hours | $ | 13.00 | per hour | $ | 10.40 | ||
Variable overhead | 0.8 | hours | $ | 4.00 | per hour | $ | 3.20 | ||
The company reported the following results concerning this product in June.
Originally budgeted output | 4,300 | units | |
Actual output | 4,300 | units | |
Raw materials used in production | 24,500 | ounces | |
Purchases of raw materials | 20,200 | ounces | |
Actual direct labor-hours | 6,400 | hours | |
Actual cost of raw materials purchases | $ | 42,800 | |
Actual direct labor cost | $ | 14,300 | |
Actual variable overhead cost | $ | 4,150 | |
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
-
$3,623 U
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$3,623 F
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$6,840 U
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$6,840 F
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