Tharaldson Corporation makes a product with the following standard costs: Standa
ID: 2596436 • Letter: T
Question
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 7.5 ounces 8.9 hours 8.9 hours Standard Standard Price or Cost Per Rate $8.80 per ounce 19.80 per hour $8.80 per hour Unit Direct materials Direct labor Variable overhead $68.8e $17.18 $ 7.28 The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 2,98 units 2,580 units 19,58e ounces 22,480 ounces 4,780 hours 41,48e $12,980 $ 3,45e The company applies variable overhesd 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: Multiple Cholce $6,000 F 51,386 U $6,000 U 1,386 FExplanation / Answer
Materials quantity variance = (Actual quatity - Standard quantity)*Standard rate
Actual quantity = 19500 ounces
Standard quantity = 2500*7.5 = 18750 ounces
Standard rate = $8 per ounce
Materials quantity variance = (19500 - 18750)*8 = 6000 U
Answer is $6,000 U
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.