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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

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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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