hurren corporation makes a product with the following standard costs 450773
Aug 29, 2021 | Uncategorized
| Hurren Corporation makes a product with the following standard costs: |
| Inputs |
Standard Quantity or Hours |
Standard Price or Rate |
Standard Cost Per Unit |
| Direct materials |
4.9 grams |
$4.00 per gram |
$19.60 |
| Direct labor |
1.2 hours |
$14.00 per hour |
$16.80 |
| Variable overhead |
1.2 hours |
$9.00 per hour |
10.80 |
| The company reported the following results concerning this product in June. |
| Originally budgeted output |
6,300 |
units |
| Actual output |
6,200 |
units |
| Raw materials used in production |
28,430 |
grams |
| Actual direct labor hours |
5,000 |
hours |
| Purchases of raw materials |
32,300 |
grams |
| Actual price of raw materials purchased |
$4.10 |
per gram |
| Actual direct labor rate |
$14.90 |
per hour |
| Actual variable overhead rate |
$8.70 |
per hour |
|
The company applies variable overhead on the basis of direct labor hours. The direct materials price variance is computed when the materials are purchased.
|
| The materials price variance for June is: (Round your intermediate calculations to 2 decimal places.) |
| |
$3,230 F |
| |
$3,230 U |
| |
$2,860 F |
| |
$2,860 U |
