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6.

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.0 grams	$8.00 per gram	$32.00
Direct labor	0.6 hours	$12.00 per hour	$7.20
Variable overhead	0.6 hours	$8.00 per hour	$4.80

The company reported the following results concerning this product in June.

Originally budgeted output	7,300	units
Actual output	7,200	units
Raw materials used in production	28,340	grams
Actual direct labor-hours	4,100	hours
Purchases of raw materials	31,400	grams
Actual price of raw materials purchased	$8.10	per gram
Actual direct labor rate	$12.90	per hour
Actual variable overhead rate	$7.70	per hour

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 efficiency variance for June is:

$2,640 F

$2,838 F

$2,640 U

$2,838 U

7.

7.

Rostad Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:

	Original Budget	Actual Costs
Variable overhead costs:
Supplies	$6,500	$6,690
Indirect labor	10,590	9,940
Fixed overhead costs:
Supervision	14,310	14,360
Utilities	13,600	13,650
Factory depreciation	57,230	57,130
Total overhead costs	$102,230	$101,770

The company based its original budget on 6,600 machine-hours. The company actually worked 6,560 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,490 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Do not round intermediate calculations.)

$1,419 favorable

$1,323 unfavorable

$1,419 unfavorable

$1,323 favorable

8.

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

Standard hours per unit of output	2.90	machine-hours
Standard variable overhead rate	$10.65	per machine-hour

The following data pertain to operations for the last month:

Actual hours	9,700	machine-hours
Actual total variable manufacturing overhead cost	$95,750
Actual output	2,400	units

What is the variable overhead efficiency variance for the month? $5,893 F $5,893 U $29,181 U $7,932 U

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