QUESTION 21 Hurren Corporation makes a product with the following standard costs

Question

QUESTION 21

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

3.3 grams

  $3.00 per gram

$9.90          

  Direct labor

0.8 hours

  $12.00 per hour

$9.60          

  Variable overhead

0.8 hours

  $9.00 per hour

7.20          

The company reported the following results concerning this product in June.

  Originally budgeted output

8,600

  units

  Actual output

8,500

  units

  Raw materials used in production

27,000

  grams

  Actual direct labor-hours

3,400

  hours

  Purchases of raw materials

30,700

  grams

  Actual price of raw materials purchased

$3.10

  per gram

  Actual direct labor rate

$12.90

  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.)

$3,070 F

$2,715 F

$2,715 U

$3,070 U

7 points   

QUESTION 22

Landram Corporation makes a product with the following standard costs:

  Inputs

Standard Quantity or Hours

Standard Price or Rate

  Direct materials

                 2.0 kilos

         $7.00 per kilo

  Direct labor

                 1.3 hours

         $17.00 per hour

  Variable overhead

                 1.3 hours

         $5.00 per hour

In March the company produced 4,500 units using 10,190 kilos of the direct material and 2,170 direct labor-hours. During the month, the company purchased 10,760 kilos of the direct material at a cost of $76,640. The actual direct labor cost was $38,249 and the actual variable overhead cost was $11,950.

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 quantity variance for March is:

$8,330 F

$8,330 U

$8,476 U

$8,476 F

Hurren Corporation makes a product with the following standard costs:

Explanation / Answer

QUESTION 21

QUESTION 22

Actual price of raw materials purchased Standard Price Differnce No of Unit Purchased Variance 3.1 3 0.1 30700 3070 U

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