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
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
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 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 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:
