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 21E: Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is...

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