Kartman Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Standard Standard Quantity Price or Cost Per or Hours Rate Unit 7.7 pounds $8.20 0.3 0.3 hours $36.00 Multiple Choice $451 U $771 F $771 U $451 F hours $5.20 per $ pound 63.14 per $ hour 10.80 $ per hour 1.56 In June the company's budgeted production was 4,600 units but the actual production was 4,700 units. The company used 23,350 pounds of the direct material and 2,410 direct labor-hours to produce this output. During the month, the company purchased 26,600 pounds of the direct material at a cost of $182,180. The actual direct labor cost was $58,221 and the actual variable overhead cost was $11,761. 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:

Kartman Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Standard Standard Quantity Price or Cost Per or Hours Rate Unit 7.7 pounds $8.20 0.3 0.3 hours $36.00 Multiple Choice $451 U $771 F $771 U $451 F hours $5.20 per $ pound 63.14 per $ hour 10.80 $ per hour 1.56 In June the company's budgeted production was 4,600 units but the actual production was 4,700 units. The company used 23,350 pounds of the direct material and 2,410 direct labor-hours to produce this output. During the month, the company purchased 26,600 pounds of the direct material at a cost of $182,180. The actual direct labor cost was $58,221 and the actual variable overhead cost was $11,761. 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:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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