Majer Corporation makes a product with the following standard costs: ...
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Majer Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.3 ounces $ 2.00 per ounce $ 12.60 Direct labor 0.6 hours $ 18.00 per hour $ 10.80 Variable overhead 0.6 hours $ 2.00 per hour $ 1.20
The company reported the following results concerning this product in February.
Originally budgeted output 4,800 units Actual output 5,100 units Raw materials used in production 30,300 ounces Actual direct labor-hours 2,090 hours Purchases of raw materials 32,700 ounces Actual price of raw materials $ 77.10 per ounce Actual direct labor rate $ 67.60 per hour Actual variable overhead rate $ 5.90 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 variable overhead efficiency variance for February is:
Majer Corporation makes a product with the following standard costs:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||||
| Direct materials | 6.3 | ounces | $ | 2.00 | per ounce | $ | 12.60 | ||
| Direct labor | 0.6 | hours | $ | 18.00 | per hour | $ | 10.80 | ||
| Variable overhead | 0.6 | hours | $ | 2.00 | per hour | $ | 1.20 | ||
The company reported the following results concerning this product in February.
| Originally budgeted output | 4,800 | units | |
| Actual output | 5,100 | units | |
| Raw materials used in production | 30,300 | ounces | |
| Actual direct labor-hours | 2,090 | hours | |
| Purchases of raw materials | 32,700 | ounces | |
| Actual price of raw materials | $ | 77.10 | per ounce |
| Actual direct labor rate | $ | 67.60 | per hour |
| Actual variable overhead rate | $ | 5.90 | 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 variable overhead efficiency variance for February is:
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