A corporation makes a product with the following standard costs: Standard Quantity or Hours 7.1ounces Standard Price or Standard Cost Rate Per Unit Direct materials $ 4.00 per $ 28.40 ounce $ 11.00 per Direct labor 0.2hours $ 2.20 hour Variable 0.2hours $ 0.80 overhead hour The company reported the following results concerning this product in June. $ 4.00per Originally budgeted output 2500units Actual output 3000 units Raw materials used in production 21.500ounces Purchases of raw materials 19,400ounces Actual direct labor-hours 560hours Actual cost of raw materials purchases $ 45.100 Actual direct labor cost $ 12,500 Actual variable overhead cost $3250 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: 0$560U O $440 F 0$440 / O $660 F A hospital's cost formula for its wages and salaries is $1250 per month plus $254 per birth. For the month of October, the company planned for activity of 105 births, but the actual level of activity was 101 births. The actual wages and salaries for the month was $26,915 The activity variance for wages and salaries in October would be closest to $1016 ) 5976 F O 51016 F - $976 |