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# Hurren Corporation makes a product with the following standard costs:

Hurren Corporation makes a product with the following standard costs:

Inputs Standard Quantity Standard Price Standard Cost
or hours or rate per unit
Direct Materials 4.4 Grams \$8.00 per gram \$35.20
Direct Labor 0.7 hours \$19.00 per hour \$13.30
Variable Overhead 0.7 hours \$4.00 per hour \$2.80

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

Originally budgeted output...............................6,600 units
Actual output....................................................6,500 units
Raw materials used in production....................28,380 grams
Actual direct labor-hours..................................4,500 hours
Purchases of raw materials..............................31,800 grams
Actual price of raw materials purchased..........\$8.10 per gram
Actual direct labor rate.....................................\$19.90 per hour
Actual variable overhead rate..........................\$3.70 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

1. The materials quantity variance for June is:
A. \$1,760
B. \$1,782
C. \$1,760
D. \$1,782

2. The materials price variance for June is:
A. \$3,180 U
B. \$2,860 F
C. \$2,860 U
D. \$3,180 F

3.The labor efficiency variance for June is:
A.\$995
B.\$950
C.\$995
D.\$950

4.The labor rate variance for June is:
A. \$4,095
B. \$4,050
C. \$4,095
D. \$4,050

5. The variable overhead efficiency variance for June is:
A. \$185 F
B. \$200 U
C. \$185 U
D. \$200 F

6.The variable overhead rate variance for June is:
A. \$1,365 U
B. \$1,365 F
C. \$1,350 F
D. \$1,350 U

Hurren Corporation makes a product with the following standard costs:
Inputs Standard Quantity Standard Price Standard Cost
or hours or rate per unit
Direct Materials 4.4 Grams \$8.00 per gram...

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