Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.3 ounces $ 3.00 per ounce $ 21.90 Direct labor 0.7 hours $ 17.00 per hour $ 11.90 Variable overhead 0.7 hours $ 6.00 per hour $ 4.20
The company reported the following results concerning this product in June.
Originally budgeted output 2,700 units Actual output 2,300 units Raw materials used in production 18,500 ounces Purchases of raw materials 21,600 ounces Actual direct labor-hours 3,800 hours Actual cost of raw materials purchases $ 42,100 Actual direct labor cost $ 12,700 Actual variable overhead cost $ 3,350
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:
Multiple Choice
$22,700 U
$22,700 F
$1,944 F
$1,944 U
Tharaldson Corporation makes a product with the following standard costs:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||||
| Direct materials | 7.3 | ounces | $ | 3.00 | per ounce | $ | 21.90 | ||
| Direct labor | 0.7 | hours | $ | 17.00 | per hour | $ | 11.90 | ||
| Variable overhead | 0.7 | hours | $ | 6.00 | per hour | $ | 4.20 | ||
The company reported the following results concerning this product in June.
| Originally budgeted output | 2,700 | units | |
| Actual output | 2,300 | units | |
| Raw materials used in production | 18,500 | ounces | |
| Purchases of raw materials | 21,600 | ounces | |
| Actual direct labor-hours | 3,800 | hours | |
| Actual cost of raw materials purchases | $ | 42,100 | |
| Actual direct labor cost | $ | 12,700 | |
| Actual variable overhead cost | $ | 3,350 | |
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:
Multiple Choice
$22,700 U
$22,700 F
$1,944 F
$1,944 U
Related questions
Tharaldson Corporation makes a product with the following standard costs:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost per Unit | |
| Direct material | 6.6 ounces | $ 5.00 per ounce | $33.00 |
| Direct labor | 0.8 hours | $ 10.00 per hour | $8.00 |
| Variable overhead | 0.8 hours | $ 5.00 per hour | $4.00 |
The company reported the following results concerning this product in June.
| Originally budgeted output | 2,000 units |
| Actual output | 2,500 units |
| Raw materials used in production | 19,000 ounces |
| Purchases of raw materials | 21,500 ounces |
| Actual direct labor-hours | 4,900 hours |
| Actual cost of raw materials purchases | $40,500 |
| Actual direct labor cost | $12,000 |
| Actual variable overhead cost | $3,000 |
The company applies variable overhead on the basis of direct labor hours. The direct material purchases variance is computed when the materials are purchased .
The materials quantity variance for June is:
Majer Corporation makes a product with the following standard costs:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||||
| Direct materials | 6.1 | ounces | $ | 2.00 | per ounce | $ | 12.20 | ||
| Direct labor | 0.7 | hours | $ | 12.00 | per hour | $ | 8.40 | ||
| Variable overhead | 0.7 | hours | $ | 2.00 | per hour | $ | 1.40 | ||
The company reported the following results concerning this product in February.
| Originally budgeted output | 5,400 | units | |
| Actual output | 5,700 | units | |
| Raw materials used in production | 33,100 | ounces | |
| Actual direct labor-hours | 2,030 | hours | |
| Purchases of raw materials | 28,300 | ounces | |
| Actual price of raw materials | $ | 17.10 | per ounce |
| Actual direct labor rate | $ | 7.60 | per hour |
| Actual variable overhead rate | $ | 1.10 | per hour |
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 rate variance for February is:
Multiple Choice
$1,827 F
$1,832 F
$1,827 U
$1,832 F
