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Standard Quantity Hurren Corporation makes a product with the following standard costs: Standard Price or Standard Cost or Hours Rate per Unit Direct 9 grams $4 per gram $36 materials Direct labor 0.3 hours $14 per hour $4.20 Variable 0.3 hours $6 per hour $1.80 overhead The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor hours 7,200 units 7,300 units 40,600 grams 46,900 grams 630 hours Actual cost of raw materials purchases $262,290 Actual direct labor cost Actual variable overhead cost $8,153 $3,118 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 labor rate variance for June is: A. $681 F B. $667 F C. $681 U D. $667 U

Standard Quantity Hurren Corporation makes a product with the following standard costs: Standard Price or Standard Cost or Hours Rate per Unit Direct 9 grams $4 per gram $36 materials Direct labor 0.3 hours $14 per hour $4.20 Variable 0.3 hours $6 per hour $1.80 overhead The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor hours 7,200 units 7,300 units 40,600 grams 46,900 grams 630 hours Actual cost of raw materials purchases $262,290 Actual direct labor cost Actual variable overhead cost $8,153 $3,118 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 labor rate variance for June is: A. $681 F B. $667 F C. $681 U D. $667 U

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Standard Quantity Hurren Corporation makes a product with the following standard costs: Standard Price or Standard Cost or Hours Rate per Unit Direct 9 grams $4 per gram $36 materials Direct labor 0.3 hours $14 per hour $4.20 Variable 0.3 hours $6 per hour $1.80 overhead The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor hours 7,200 units 7,300 units 40,600 grams 46,900 grams 630 hours Actual cost of raw materials purchases $262,290 Actual direct labor cost Actual variable overhead cost $8,153 $3,118 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 labor rate variance for June is: A. $681 F B. $667 F C. $681 U D. $667 U
Transcribed Image Text:Standard Quantity Hurren Corporation makes a product with the following standard costs: Standard Price or Standard Cost or Hours Rate per Unit Direct 9 grams $4 per gram $36 materials Direct labor 0.3 hours $14 per hour $4.20 Variable 0.3 hours $6 per hour $1.80 overhead The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor hours 7,200 units 7,300 units 40,600 grams 46,900 grams 630 hours Actual cost of raw materials purchases $262,290 Actual direct labor cost Actual variable overhead cost $8,153 $3,118 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 labor rate variance for June is: A. $681 F B. $667 F C. $681 U D. $667 U
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