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MC Qu. 109 Hurren Corporation makes a product with the following standard costs: ...

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Accounting

MC Qu. 109 Hurren Corporation makes a product with the following standard costs:

Hurren Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
Direct materials 4.2 grams $4.00 per gram $16.80
Direct labor 0.8 hours $11.00 per hour $8.80
Variable overhead 0.8 hours $6.00 per hour $4.80

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

Originally budgeted output 7,200 units
Actual output 7,100 units
Raw materials used in production 28,360 grams
Actual direct labor-hours 5,600 hours
Purchases of raw materials 31,600 grams
Actual price of raw materials purchased $4.10 per gram
Actual direct labor rate $11.90 per hour
Actual variable overhead rate $5.70 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 variable overhead rate variance for June is:

$1,680 U

$1,704 U

$1,680 F

$1,704 F

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