Tharaldson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 5.4 ounces 0.7 hours 0.7 hours Standard Price or Rate $ 3.00 per ounce $ 12.00 per hour $ 9.00 per hour Standard Cost Per Unit $ 16.20 $ 8.40 $ 6.30 The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 4,200 units 4,200 units 20,400 ounces 21,500 ounces 5,300 hours $ 42,900 $ 14,200 $ 4,100 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 price variance for June is: Actual variable overhead cost $ 14,200 $ 4,100 The company applies variable overhead on the basis of direct labor-hours. The direct mater purchased The materials price variance for June is: Multiple Choice $21,600 Unfavorable $1,935 Unfavorable O $21,600 Favorable $1,935 Favorable Gipple Corporation makes a product that uses a material with the quantity standard of 74 grams per unit of output and the price standard of $6.10 per gram. In January the company produced 3,500 units using 24,970 grams of the direct material. During the month the company purchased 27,500 grams of the direct material at $6.30 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice $5.180 Unfavorable $5,500 Unfavorable O $5,500 Favorable $5,180 Favorable Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate Direct materials 12.0 pounds $ 11.50 per pound Direct labor 0.8 hours $ 36.00 per hour Variable overhead 0.8 hours $ 17.00 per hour In January the company produced 3,470 units using 13,880 pounds of the qirect material and 2,896 direct labor hours. During the month, the company purchased 14,640 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $103,840 and the actual variable overhead cost was $47,220 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 labor rate variance for January is: purchased 14,640 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $103,840 and the actual variable overhead cost was $47.220. 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 labor rate variance for January is: Multiple Choice $416 Unfavorable $3,904 Favorable $416 Favorable O $3,904 Unfavorable
