Question

Tharaldson Corporation makes a product with the following standard costs: 

	Standard Quantity or Hours	Standard price or Rate	Standard Cost PerUnit
Direct materials	7.3 ounces	$3.00 per ounce	$21.90
Direct labor	0.2 hours	$17.00 per hour	$3.40
Variable overhead	0.2 hours	$6.00 per hour	$1.20

The 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 Hours	Standard price or Rate	Standard Cost PerUnit
Direct materials	7.5 ounces	$3.00 per ounce	$22.50
Direct labor	0.4 hours	$19.00 per hour	$7.60
Variable overhead	0.4 hours	$6.00 per hour	$2.40

The 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 variable overhead rate variance for June is: 

Answer 1