Tharaldson Corporation makes a product with the following standard costs: ...
50.1K
Verified Solution
Link Copied!
Question
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
6.3
ounces
$
2.00
per ounce
$
12.60
Direct labor
0.8
hours
$
11.00
per hour
$
8.80
Variable overhead
0.8
hours
$
6.00
per hour
$
4.80
The company reported the following results concerning this product in June.
Originally budgeted output
3,300
units
Actual output
2,600
units
Raw materials used in production
21,300
ounces
Purchases of raw materials
22,400
ounces
Actual direct labor-hours
5,600
hours
Actual cost of raw materials purchases
$
42,000
Actual direct labor cost
$
13,300
Actual variable overhead cost
$
3,650
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:
Garrison 16e Rechecks 2017-10-31
Multiple Choice
$2,016 F
$2,800 F
$2,800 U
$2,016 U
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
