Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials. Direct labor Variable overhead 7.3 0.4 0.4 Standard Cost Per Unit pounds hours hours $ 7.80 $ $ 32.00 4.80 per pound per hour per hour $ $ 12.80 $ 1.92 56.94 In June the company's budgeted production was 4,200 units but the actual production was 4,300 units. The company used 22,950 pounds of the direct material and 2,370 direct labor-hours to produce this output. During the month, the company purchased 26,200 pounds of the direct material at a cost of $178,180. The actual direct labor cost was $57,821 and the actual variable overhead cost was $11,031. 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 variable overhead rate variance for June is:
Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials. Direct labor Variable overhead 7.3 0.4 0.4 Standard Cost Per Unit pounds hours hours $ 7.80 $ $ 32.00 4.80 per pound per hour per hour $ $ 12.80 $ 1.92 56.94 In June the company's budgeted production was 4,200 units but the actual production was 4,300 units. The company used 22,950 pounds of the direct material and 2,370 direct labor-hours to produce this output. During the month, the company purchased 26,200 pounds of the direct material at a cost of $178,180. The actual direct labor cost was $57,821 and the actual variable overhead cost was $11,031. 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 variable overhead rate variance for June is:
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Kartman Corporation makes a product with the following standard costs:
Standard Quantity or
Hours
Standard Price or
Rate
Direct materials.
Direct labor
Variable overhead
7.3
0.4
0.4
Standard Cost Per Unit
pounds
hours
hours
$ 7.80
$
$
32.00
4.80
per pound $ 56.94
per hour
$ 12.80
$ 1.92
per hour
In June the company's budgeted production was 4,200 units but the actual production was 4,300 units. The company used 22,950
pounds of the direct material and 2,370 direct labor-hours to produce this output. During the month, the company purchased 26,200
pounds of the direct material at a cost of $178,180. The actual direct labor cost was $57,821 and the actual variable overhead cost was
$11,031.
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 variable overhead rate variance for June is:
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