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Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.8 ounces $ 3.00 per ounce Direct labor 0.5 hours $17.40 $12.00 per hour $6.00 Variable overhead 0.5 hours $5.00 per hour $2.50 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 1,212 Favorable 3,800 units 3,400 units 22,000 ounces 21,900 ounces The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases va hen the materials are purchased. e variable overhead rate variance for June is: ,200 Favorable 520 hours $ 42,500 $ 13,800 $ 3,800

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.8 ounces $ 3.00 per ounce Direct labor 0.5 hours $17.40 $12.00 per hour $6.00 Variable overhead 0.5 hours $5.00 per hour $2.50 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 1,212 Favorable 3,800 units 3,400 units 22,000 ounces 21,900 ounces The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases va hen the materials are purchased. e variable overhead rate variance for June is: ,200 Favorable 520 hours $ 42,500 $ 13,800 $ 3,800

FINANCIAL ACCOUNTING
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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Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.8 ounces $ 3.00 per ounce Direct labor 0.5 hours $17.40 $6.00 $ 12.00 per hour Variable overhead 0.5 hours $ 5.00 per hour $2.50 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 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases vari- hen the materials are purchased. e variable overhead rate variance for June is: 51,212 Favorable 3,800 units 3,400 units 22,000 ounces 21,900 ounces 520 hours $ 42,500 $ 13,800 $ 3,800 ,200 Favorable
Transcribed Image Text:Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.8 ounces $ 3.00 per ounce Direct labor 0.5 hours $17.40 $6.00 $ 12.00 per hour Variable overhead 0.5 hours $ 5.00 per hour $2.50 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 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases vari- hen the materials are purchased. e variable overhead rate variance for June is: 51,212 Favorable 3,800 units 3,400 units 22,000 ounces 21,900 ounces 520 hours $ 42,500 $ 13,800 $ 3,800 ,200 Favorable
Originally budget 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 3,400 units 22,000 ounces 21,900 ounces O $1,212 Favorable O $1,200 Favorable O $1,212 Unfavorable O $1,200 Unfavorable 520 hours $ 42,500 $ 13,800 $ 3,800 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:
Transcribed Image Text:Originally budget 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 3,400 units 22,000 ounces 21,900 ounces O $1,212 Favorable O $1,200 Favorable O $1,212 Unfavorable O $1,200 Unfavorable 520 hours $ 42,500 $ 13,800 $ 3,800 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:
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