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Tidd Corporation makes a product with the following standard costs: Inputs Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials
Tidd Corporation makes a product with the following standard costs: |
Inputs | Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit |
Direct materials | 4.8 grams | $2.00 per gram | $9.60 |
Direct labor | 0.5 hours | $15.00 per hour | $7.50 |
Variable overhead | 0.5 hours | $2.00 per hour | $1.00 |
The company reported the following results concerning this product in November. |
Originally budgeted output | 8,400 | units |
Actual output | 8,500 | units |
Raw materials used in production | 44,680 | grams |
Purchases of raw materials | 47,170 | grams |
Actual direct labor-hours | 7,740 | hours |
Actual cost of raw materials purchases | $132,310 | |
Actual direct labor cost | $125,003 | |
Actual variable overhead cost | $13,786 |
The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased. |
The variable overhead efficiency variance for November is: |
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