Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Direct materials 4.3 grams Direct labor 1.8 hours Variable 1.8 hours overhead Standard Price or Rate Standard Cost Per Unit $6 per gram $25.80 $18 per hour $32.40 $5 per hour $9 The company reported the following results concerning this product in June. Originally budgeted output 7,000 units Actual output 6,900 units Raw materials used in production 28,370 grams Actual direct labor-hours 4,400 hours Purchases of raw materials 31,700 grams Actual price of raw materials purchased $6.10 per gram Actual direct labor rate Actual variable overhead rate $18.90 per hour $4.70 per hour 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: a. $7,800 U b. $7,930 F c. $7,800 F d. $7,930 U

Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Direct materials 4.3 grams Direct labor 1.8 hours Variable 1.8 hours overhead Standard Price or Rate Standard Cost Per Unit $6 per gram $25.80 $18 per hour $32.40 $5 per hour $9 The company reported the following results concerning this product in June. Originally budgeted output 7,000 units Actual output 6,900 units Raw materials used in production 28,370 grams Actual direct labor-hours 4,400 hours Purchases of raw materials 31,700 grams Actual price of raw materials purchased $6.10 per gram Actual direct labor rate Actual variable overhead rate $18.90 per hour $4.70 per hour 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: a. $7,800 U b. $7,930 F c. $7,800 F d. $7,930 U

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...

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