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Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.5 ounces $ 2.00 per ounce $23.00 per hour Direct labor 0.2 hours $13.00 $4.60 Variable overhead 0.2 hours $6.00 per hour $ 1.20 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 actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 2,700 units 2,800 units 19,380 ounces 21,400 ounces 500 hours $ 40,660 $ 12,050 $ 3,100 e company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is com en the materials are purchased.

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.5 ounces $ 2.00 per ounce $23.00 per hour Direct labor 0.2 hours $13.00 $4.60 Variable overhead 0.2 hours $6.00 per hour $ 1.20 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 actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 2,700 units 2,800 units 19,380 ounces 21,400 ounces 500 hours $ 40,660 $ 12,050 $ 3,100 e company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is com en the materials are purchased.

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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Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 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: O $550 Unfavorable $616 Unfavorable 21,400 ounces 500 hours $ 40,660 $ 12,050 $ 3,100 O $616 Favorable O $550 Favorable 4
Transcribed Image Text:Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 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: O $550 Unfavorable $616 Unfavorable 21,400 ounces 500 hours $ 40,660 $ 12,050 $ 3,100 O $616 Favorable O $550 Favorable 4
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit $ 13.00 Direct materials 6.5 ounces $ 2.00 per ounce $23.00 per hour Direct labor 0.2 hours $4.60 Variable overhead 0.2 hours $6.00 per hour $1.20 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 Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 2,700 units 2,800 units 19,380 ounces 21,400 ounces 500 hours $ 40,660 $ 12,050 $3,100 e company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is com en the materials are purchased.
Transcribed Image Text:Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit $ 13.00 Direct materials 6.5 ounces $ 2.00 per ounce $23.00 per hour Direct labor 0.2 hours $4.60 Variable overhead 0.2 hours $6.00 per hour $1.20 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 Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 2,700 units 2,800 units 19,380 ounces 21,400 ounces 500 hours $ 40,660 $ 12,050 $3,100 e company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is com en the materials are purchased.
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