Hurren Corporation makes a product with the following standard costs: Inputs Dir

Question

Hurren Corporation makes a product with the following standard costs: Inputs Direct materials Direct labor Varlable overhead Standard QuantityStandard Price or Standard Cost Rate $5.00 per gram $16.00 per hour $5.00 per hour or Hours 5.1 grams 1.4 hours 1.4 hours Per Unlt $25.50 $22.40 $700 The company reported the following results concerning this product in June Originally budgeted output Actual output Raw materlals used In production Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual varlable overhead rate 6,000 units 5,900 units 28,450 grams 5,200 hours 32,500 grams $5.10 per gram $16.90 per hour $4.70 per hour The company applies varlable overhead on the basis of direct labor-hours. The direct materials price varlance is computed when the materials are purchased. The materials quantity varlance for June is: O $8.200 u O $8,200F O $8,364 U O $8,364F

Explanation / Answer

1) Material quantity variance = (5900*5.1-28450)*5 = 8200 F

So answer is b) $8200 F

2) Material price variance = (5-5.1)*31900 = 3190 U

So answer is b) $3190 U

3) labour efficiency variance = (7600*.8-5500)*10 = 5800 F

So answer is a) $5800 F

4) Labour rate variance = (10-10.90)*4900 = 4410 U

So answer is d) $4410 U

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.