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 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:
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
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
