FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity or
Hours
5.6 ounces
0.3 hours
0.3 hours
Direct materials
Direct labor
Variable overhead
The company reported the following results concerning this product in June.
Originally budgeted output
Actual output
Raw materials used in production
Purchases of raw materials
Actual direct labor-hours
Actual cost of raw materials purchases
Actual direct labor cost
Actual variable overhead cost
Multiple Choice
O
O
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 labor efficiency variance for June is:
O
O
$6,600 F
$6,600 U
Standard Price or Rate
$ 3.00 per ounce
$ 10.00 per hour
$7.00 per hour
$8,800 F
$8,800 U
4,000 units
4,000 units
22,000 ounces
22,700 ounces
540 hours
$ 42,700
$ 14,000
$ 4,000
Standard Cos
Per Unit
$ 16.80
$ 3.00
$ 2.10
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Transcribed Image Text:Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 5.6 ounces 0.3 hours 0.3 hours Direct materials Direct labor Variable overhead The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost Multiple Choice O O 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 labor efficiency variance for June is: O O $6,600 F $6,600 U Standard Price or Rate $ 3.00 per ounce $ 10.00 per hour $7.00 per hour $8,800 F $8,800 U 4,000 units 4,000 units 22,000 ounces 22,700 ounces 540 hours $ 42,700 $ 14,000 $ 4,000 Standard Cos Per Unit $ 16.80 $ 3.00 $ 2.10
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