Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.4 grams $8 per gram $43.20 Direct labor 1.7 hours $19 per hour $32.30 Variable 1.7 hours $8 per hour $13.60 overhead Originally budgeted output The company reported the following results concerning this product in June. Actual output 5,600 units 5,500 units Raw materials used in production 28,480 grams 5,500 hours 32,800 grams Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased $8.10 per gram Actual direct labor rate Actual variable overhead rate $19.90 per hour $7.70 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: a. $3,280 U b. $3,280 F c. $2,870 U d. $2,870 F

Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.4 grams $8 per gram $43.20 Direct labor 1.7 hours $19 per hour $32.30 Variable 1.7 hours $8 per hour $13.60 overhead Originally budgeted output The company reported the following results concerning this product in June. Actual output 5,600 units 5,500 units Raw materials used in production 28,480 grams 5,500 hours 32,800 grams Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased $8.10 per gram Actual direct labor rate Actual variable overhead rate $19.90 per hour $7.70 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: a. $3,280 U b. $3,280 F c. $2,870 U d. $2,870 F

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 8P: Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were...

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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
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Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs: Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. 2. What if Nashler Companys actual direct materials cost were 1,175,040? How would that affect the variance for direct materials? The total cost variance?
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