Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 6.5 ounces Direct labor 0.2 hours $ 2.00 per ounce $ 23.00 per hour Standard Cost Per Unit $ 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 2,700 units 2,800 units 19,380 ounces Purchases of raw materials Actual direct labor-hours 21,400 ounces 500 hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost $ 40,660 $ 12,050 $ 3,100 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 materials quantity variance for June is: Multiple Choice $2,242 U $2,360 F
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 6.5 ounces Direct labor 0.2 hours $ 2.00 per ounce $ 23.00 per hour Standard Cost Per Unit $ 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 2,700 units 2,800 units 19,380 ounces Purchases of raw materials Actual direct labor-hours 21,400 ounces 500 hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost $ 40,660 $ 12,050 $ 3,100 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 materials quantity variance for June is: Multiple Choice $2,242 U $2,360 F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A5
Transcribed Image Text:Tharaldson Corporation makes a product with the following standard costs:
Standard
Quantity or
Hours
Standard Price or Rate
Direct materials
6.5 ounces
Direct labor
0.2 hours
$ 2.00 per ounce
$ 23.00 per hour
Standard Cost
Per Unit
$ 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
2,700 units
2,800 units
19,380 ounces
Purchases of raw materials
Actual direct labor-hours
21,400 ounces
500 hours
Actual cost of raw materials purchases
Actual direct labor cost
Actual variable overhead cost
$ 40,660
$ 12,050
$ 3,100
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 materials quantity variance for June is:
Multiple Choice
$2,242 U
$2,360 F
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education