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

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Accounting

Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
Direct materials 6.4 ounces $ 3.00 per ounce $ 19.20
Direct labor 0.3 hours $ 10.00 per hour $ 3.00
Variable overhead 0.3 hours $ 5.00 per hour $ 1.50

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

Originally budgeted output 3,200 units
Actual output 2,600 units
Raw materials used in production 20,200 ounces
Purchases of raw materials 21,300 ounces
Actual direct labor-hours 460 hours
Actual cost of raw materials purchases $ 45,200
Actual direct labor cost $ 13,200
Actual variable overhead cost $ 3,600

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 June is:

Garrison 16e Rechecks 2017-10-31

Multiple Choice

$1,696 F

$1,600 U

$1,696 U

$1,600 F

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