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  3. majer corporation makes a product with the followi

Majer Corporation makes a product with the following standard costs: ...

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Accounting

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 $ 4.00 per ounce $ 25.20
Direct labor 0.9 hours $ 14.00 per hour $ 12.60
Variable overhead 0.9 hours $ 4.00 per hour $ 3.60

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

Originally budgeted output 5,200 units
Actual output 5,900 units
Raw materials used in production 33,300 ounces
Actual direct labor-hours 2,050 hours
Purchases of raw materials 35,700 ounces
Actual price of raw materials $ 37.10 per ounce
Actual direct labor rate $ 27.60 per hour
Actual variable overhead rate $ 3.60 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 rate variance for February is:

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