Question

In: Accounting

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...

Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
Direct materials 5.5 ounces $ 2.00 per ounce $ 11.00
Direct labor 0.4 hours $ 11.00 per hour $ 4.40
Variable overhead 0.4 hours $ 8.00 per hour $ 3.20

The company reported the following results concerning this product in June.

Originally budgeted output 4,100 units
Actual output 4,100 units
Raw materials used in production 20,500 ounces
Purchases of raw materials 21,600 ounces
Actual direct labor-hours 550 hours
Actual cost of raw materials purchases $ 42,800
Actual direct labor cost $ 14,100
Actual variable overhead cost $ 4,050

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 rate variance for June is:

(A) $1,523 F

(B) $8,050 F

(C) $1,523 U

(D) $8,050 U

Solutions

Expert Solution

Answer : D) $8,050 U

Labor Rate Variance = ( Actual Rate - Standard Rate )* Actual Hours

Actual  rate = 14,100/550 = 25.63

Labor Rate Variance = (Actual rate * actual hours)-( Standard Rate * Actual rate )

= 14,100-(11*550) = $8050 U


Related Solutions

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.2 ounces $ 2.00 per ounce $ 14.40 Direct labor 0.3 hours $ 16.00 per hour $ 4.80 Variable overhead 0.3 hours $ 5.00 per hour $ 1.50 The company reported the following results concerning this product in June. Originally budgeted output 2,600 units Actual output 2,200 units Raw materials used in production 20,400 ounces Purchases...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.5 ounces $ 2.00 per ounce $ 13.00 Direct labor 0.2 hours $ 23.00 per hour $ 4.60 Variable overhead 0.2 hours $ 6.00 per hour $ 1.20 The company reported the following results concerning this product in June. Originally budgeted output 2,700 units Actual output 2,800 units Raw materials used in production 19,380 ounces Purchases...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.8 ounces $ 4.00 per ounce $ 27.20 Direct labor 0.5 hours $ 12.00 per hour $ 6.00 Variable overhead 0.5 hours $ 7.00 per hour $ 3.50 The company reported the following results concerning this product in June. Originally budgeted output 2,200 units Actual output 2,700 units Raw materials used in production 16,900 ounces Purchases...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.7 ounces $ 2.00 per ounce $ 15.40 Direct labor 0.2 hours $ 11.00 per hour $ 2.20 Variable overhead 0.2 hours $ 4.00 per hour $ .80 The company reported the following results concerning this product in June. Originally budgeted output 3,100 units Actual output 2,500 units Raw materials used in production 22,300 ounces Purchases...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.6 ounces $ 3.00 per ounce $ 19.80 Direct labor 0.8 hours $ 10.00 per hour $ 8.00 Variable overhead 0.8 hours $ 5.00 per hour $ 4.00 The company reported the following results concerning this product in June. Originally budgeted output 2,000 units Actual output 2,500 units Raw materials used in production 13,900 ounces Purchases...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.5 ounces $ 2.00 per ounce $ 11.00 Direct labor 0.4 hours $ 11.00 per hour $ 4.40 Variable overhead 0.4 hours $ 8.00 per hour $ 3.20 The company reported the following results concerning this product in June. Originally budgeted output 4,100 units Actual output 4,100 units Raw materials used in production 20,500 ounces Purchases...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.4 ounces $ 3.00 per ounce $ 19.20 Direct labor 0.3 hours $ 10.00 per hour $ 3.00 Variable overhead 0.3 hours $ 5.00 per hour $ 1.50 The company reported the following results concerning this product in June. Originally budgeted output 3,200 units Actual output 2,600 units Raw materials used in production 20,200 ounces Purchases...
Requirement: 1 Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours...
Requirement: 1 Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.7 ounces $ 2.00 per ounce $ 11.40 Direct labor 0.2 hours $ 11.00 per hour $ 2.20 Variable overhead 0.2 hours $ 6.00 per hour $ 1.20 The company reported the following results concerning this product in June. Originally budgeted output 3,900 units Actual output 3,500 units Raw materials used in production 20,700...
Tharaldson Corporation makes a product with the following standard costs: Standard Standard Quantity or Standard Price...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard price or RateStandard Cost PerUnitDirect materials7.3 ounces$3.00 per ounce$21.90Direct labor0.2 hours$17.00 per hour$3.40Variable overhead0.2 hours$6.00 per hour$1.20The company reported the following results concerning this product in June. 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 rate variance for June is:Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard price or RateStandard Cost...
Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or...
Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 10.4 kilos $ 7.90 per kilo Direct labor 0.3 hours $ 39.00 per hour Variable overhead 0.3 hours $ 7.90 per hour The company reported the following results concerning this product in August. Actual output 5,100 units Raw materials used in production 30,930 kilos Purchases of raw materials 33,500 kilos Actual direct labor-hours 1,120 hours Actual cost of raw materials purchases...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT