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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 6.3 ounces $ 2.00 per ounce $ 12.60
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 3,300 units
Actual output 2,600 units
Raw materials used in production 21,300 ounces
Purchases of raw materials 22,400 ounces
Actual direct labor-hours 5,600 hours
Actual cost of raw materials purchases $ 42,000
Actual direct labor cost $ 13,300
Actual variable overhead cost $ 3,650

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 materials price variance for June is:

Garrison 16e Rechecks 2017-10-31

Multiple Choice

$2,016 F

$2,800 F

$2,800 U

$2,016 U

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