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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The direct costs of materials that change with the number of units produced is an example of a fixed production cost. True or false
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