Tharaldson Corporation makes a product with the following standard costs:StandardStandard CostQuantity orHoursStandard Price or RatePer Unit$ 21.20$ 10.40$3.20Direct materials5.3 ounces$ 4.00 per ounce$13.00 per hour$ 4.00 per hourDirect labor0.8 hoursVariable overhead0.8 hoursThe company reported the following results concerning this product in June.4,300 units4,300 units24,500 ounces20,200 ounces6,400 hours$ 42,800$ 14,300$ 4,150Originally budgeted outputActual outputRaw materials used in productionPurchases of raw materialsActual direct labor-hoursActual cost of raw materials purchasesActual direct labor costActual variable overhead costThe company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance iscomputed when the materials are purchased.The materials quantity variance for June is:

Direct Materials Quantity Variance Direct material quantity variance (also called the direct…

Answered: Tharaldson Corporation makes a product…

Business

Accounting

Tharaldson Corporation makes a product with the following standard costs:

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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Question

Tharaldson Corporation makes a product with the following standard costs:
Standard
Standard Cost
Quantity or
Hours
Standard Price or Rate
Per Unit
$ 21.20
$ 10.40
$3.20
Direct materials
5.3 ounces
$ 4.00 per ounce
$13.00 per hour
$ 4.00 per hour
Direct labor
0.8 hours
Variable overhead
0.8 hours
The company reported the following results concerning this product in June.
4,300 units
4,300 units
24,500 ounces
20,200 ounces
6,400 hours
$ 42,800
$ 14,300
$ 4,150
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
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:

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