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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

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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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
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
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