Oddo Corporation makes a product with the following standardcosts:
Standard Quantity or Hours Standard Price or Rate Standard CostPer Unit
Direct materials 3.0 ounces $8.80 perounce $26.40
Direct labor 0.8 hours $22.00 perhour $17.60
Variable overhead 0.8 hours $9.00 perhour $7.20
The company reported the following results concerning thisproduct in December.
Originally budgeted output 4,580 units
Actual output 4,380 units
Raw materials used in production 13,340 ounces
Actual direct labor-hours 3,704 hours
Purchases of raw materials 15,200 ounces
Actual price of raw materials $8.60 perounce
Actual direct labor rate $20.10 perhour
Actual variable overhead rate $9.10 perhour
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased.
The variable overhead efficiency variance for December is:
$1,820 U
$1,800 F
$1,800 U
$1,820 F
Oddo Corporation makes a product with the following standardcosts:
Standard Quantity or Hours Standard Price or Rate Standard CostPer Unit
Direct materials 3.0 ounces $8.80 perounce $26.40
Direct labor 0.8 hours $22.00 perhour $17.60
Variable overhead 0.8 hours $9.00 perhour $7.20
The company reported the following results concerning thisproduct in December.
Originally budgeted output 4,580 units
Actual output 4,380 units
Raw materials used in production 13,340 ounces
Actual direct labor-hours 3,704 hours
Purchases of raw materials 15,200 ounces
Actual price of raw materials $8.60 perounce
Actual direct labor rate $20.10 perhour
Actual variable overhead rate $9.10 perhour
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased.
The variable overhead efficiency variance for December is:
$1,820 U
$1,800 F
$1,800 U
$1,820 F
Related questions
Hurren Corporation makes a product with the following standardcosts: |
| StandardQuantity or Hours | Standard Priceor Rate | Standard CostPer Unit | |
| Directmaterials | 9.10 grams | $7.00 pergram | $63.70 |
| Direct labor | 0.4 hours | $15.00 perhour | $6.00 |
| Variableoverhead | 0.4 hours | $7.00 perhour | $2.80 |
| The company reported thefollowing results concerning this product in June. |
| Originally budgetedoutput | 7,100 | units |
| Actual output | 7,200 | units |
| Raw materials usedin production | 40,700 | grams |
| Purchases of rawmaterials | 47,100 | grams |
| Actual directlabor-hours | 640 | hours |
| Actual cost of rawmaterials purchases | $262,440 | |
| Actual direct laborcost | $8,178 | |
| Actual variableoverhead cost | $3,144 |
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased. |
| The labor rate variance for Juneis: |
$1,437 F
$1,422 F
$1,437 U
$1,422 U
| Hurren Corporation makes aproduct with the following standard costs: |
| StandardQuantity or Hours | Standard Priceor Rate | Standard CostPer Unit | |
| Directmaterials | 4.9 grams | $4.00 pergram | $19.60 |
| Direct labor | 0.7 hours | $14.00 perhour | $9.80 |
| Variableoverhead | 0.7 hours | $9.00 perhour | $6.30 |
| The company reported thefollowing results concerning this product in June. |
| Originally budgetedoutput | 6,300 | units |
| Actual output | 6,200 | units |
| Raw materials usedin production | 28,430 | grams |
| Actual directlabor-hours | 4,000 | hours |
| Purchases of rawmaterials | 32,300 | grams |
| Actual price of rawmaterials purchased | $4.10 | per gram |
| Actual direct laborrate | $14.90 | per hour |
| Actual variableoverhead rate | $8.70 | per hour |
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased. |
| The variable overhead efficiencyvariance for June is: |
$2,958 F
$3,060 U
$2,958 U
$3,060 F
| Hurren Corporation makes aproduct with the following standard costs: |
| StandardQuantity or Hours | Standard Priceor Rate | Standard CostPer Unit | |
| Directmaterials | 4.8 grams | $7.00per gram | $33.60 |
| Direct labor | 0.8 hours | $13.00per hour | $10.40 |
| Variableoverhead | 0.8 hours | $8.00per hour | $6.40 |
| The company reported thefollowing results concerning this product in June. |
| Originally budgetedoutput | 6,200 | units |
| Actual output | 6,100 | units |
| Raw materials usedin production | 28,420 | grams |
| Actual directlabor-hours | 4,800 | hours |
| Purchases of rawmaterials | 32,200 | grams |
| Actual price of rawmaterials purchased | $7.10 | per gram |
| Actual direct laborrate | $13.90 | per hour |
| Actual variableoverhead rate | $7.70 | per hour |
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased. |
| The variable overhead ratevariance for June is: |
$1,464 U
$1,464 F
$1,440 F
$1,440 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:
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
