Maurice Tutor

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    Argosy University/ Phoniex University/
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    Oct-2001 - Nov-2016

Category > Accounting Posted 11 Aug 2017 My Price 12.00

Hurren Corporation

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 4.9 grams $4.00 per gram $19.60
Direct labor 1.2 hours $14.00 per hour $16.80
Variable overhead 1.2 hours $9.00 per hour 10.80

 

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

 

Originally budgeted output 6,300 units
Actual output 6,200 units
Raw materials used in production 28,430 grams
Actual direct labor-hours 5,000 hours
Purchases of raw materials 32,300 grams
Actual price of raw materials purchased $4.10 per gram
Actual direct labor rate $14.90 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.)
  $3,230 F
  $3,230 U
  $2,860 F
  $2,860 U

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 09:08 PM My Price 12.00

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