Tharaldson Corporation makes a product with the following standard costs: ...
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Accounting
Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity or Hours
Standard Price or Rate
Standard Cost Per Unit
Direct materials
6.8
ounces
$
2.00
per ounce
$
13.60
Direct labor
0.7
hours
$
12.00
per hour
$
8.40
Variable overhead
0.7
hours
$
7.00
per hour
$
4.90
The company reported the following results concerning this product in June.
Originally budgeted output
2,200
units
Actual output
2,700
units
Raw materials used in production
20,000
ounces
Purchases of raw materials
21,700
ounces
Actual direct labor-hours
4,200
hours
Actual cost of raw materials purchases
$
40,700
Actual direct labor cost
$
12,200
Actual variable overhead cost
$
3,100
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 quantity variance for June is:
Multiple Choice
$3,076 U
$3,280 F
$3,280 U
$3,076 F
Answer & Explanation
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