Answer Happy

Tharaldson Corporation makes a product with the following standard costs Standard Quantity or Hours 6.6 ounces 0.3 hours 0.3 hours Standard Cost Per Unit $ 19.80 $ 3.00 $ 1.50 Standard Price or Rate $ 3.00 per ounce $ 10.00 per hour $ 5.00 per hour 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 2,000 units 2,500 units 13,900 ounces 15,000 ounces 510 hours $ 40,000 $ 12,000 $ 3,000 The company applies variable overhead on the basis of direct lobor-hours. The direct materials purchases variance is computed when the materials are purchased The variable overhead efficiency variance for June is:
Actual The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when th are purchased. The variable overhead efficiency variance for June is: Multiple Choice $1.272 F $1,200 F $1,272U $1,200 U