Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 June is:

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 7.7 ounces 0.2 hours 0.2 hours Standard Cost Per Unit $15.40 $ 2.20 $ .80 Standard Price or Rate $ 2.00 per ounce $ 11.00 per hour $ 4.00 per hour Direct materials Direct labor Variable overhead 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 3,100 units 2,500 units 22,300 ounces 23,400 ounces 450 hours $ 45,100 $ 13,100 $ 3,550

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting An Introduction to Concepts Methods and Uses

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil

10th Edition

1111822239, 324639767, 9781111822231, 978-0324639766

More Books

Students also viewed these Accounting questions

Question

Define indirect financial compensation (employee benefits).

Answered: 1 week ago