Kartman Corporation makes a product with the following standard costs: Standard Quantity Standard Cost or Hours 6.5 pounds Standard Price or Rate Per Unit $ 7.00 per pound $ 24.00 per hour $ 4.00 per hour $ 45.50 $ 14.40 Direct materials Direct labor 0.6 hours Variable overhead 0.6 hours $ 2.40 In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. 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:

Kartman Corporation makes a product with the following standard costs: Standard Quantity Standard Cost or Hours 6.5 pounds Standard Price or Rate Per Unit $ 7.00 per pound $ 24.00 per hour $ 4.00 per hour $ 45.50 $ 14.40 Direct materials Direct labor 0.6 hours Variable overhead 0.6 hours $ 2.40 In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. 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:

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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Dineshbhai
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