Tharaldson Corporation makes a product with the following standard costs: The co
ID: 2583067 • Letter: T
Question
Tharaldson Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in June.
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:
Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.3 ounces $ 4.00 per ounce $ 25.20 Direct labor 0.8 hours $ 11.00 per hour $ 8.80 Variable overhead 0.8 hours $ 6.00 per hour $ 4.80Explanation / Answer
Materials quantity variance = (Actual quantity used - standard quantity used) * standard price
Actual quantity = 19500
Standard quantity = budgeted quantity per unit * Actual units
standard units = 2600*6.3 = 16380
standard price = $4/-
Material quantity variance = (19500-16380)*4
= 12480 Unfavourable
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.