Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 4.3 grams $6 per gram $25.80 Direct labor 1.8 hours $18 per hour $32.40 Variable 1.8 hours $5 per hour $9 overhead 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 Standard Price or Rate Standard Cost Per Unit Direct materials 4.3 grams $6 per gram $25.80 Direct labor 1.8 hours $18 per hour $32.40 Variable 1.8 hours $5 per hour $9 overhead 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

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...

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