| Gilder Corporation makes a product with the following standard costs: |
|
Standard Quantity or Hours |
Standard Price or Rate |
Standard Cost Per Unit |
| Direct materials |
4.6 grams |
$4.00 per gram |
$18.40 |
| Direct labor |
0.8 hours |
$11.00 per hour |
$8.80 |
| Variable overhead |
0.8 hours |
$6.00 per hour |
$4.80 |
| The company reported the following results concerning this product in June. |
| Originally budgeted output |
6,800 |
units |
| Actual output |
6,700 |
units |
| Raw materials used in production |
28,400 |
grams |
| Purchases of raw materials |
32,000 |
grams |
| Actual direct labor-hours |
4,700 |
hours |
| Actual cost of raw materials purchases |
$131,200 |
|
| Actual direct labor cost |
$55,930 |
|
| Actual variable overhead cost |
$26,790 |
|
|
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 efficiency variance for June is: |
$3,762 F
$3,960 U
$3,762 U
$3,960 F
