Final exam Buluck Corporation makes a product with the follo

Final exam Buluck Corporation makes a product with the following standard costs: Quantity or Standard Price or 3.5 grams 0.7 hours$11.00 per hour 0.7 hours 2.00 per hour 1.00 per gram Direct labor Variable overhead The company reported the following results concerning this product in July Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materiais Actual price of raw materials purchased 1.20 per grarm Actual direct labor rate Actual variable overhead rate 3,000 units 11,370 grams 1,910 hours 12,100 grams s 11.40 per hour s 2.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed

Solution

A Actual Output            3,000 SR Standard direct labor rate $11 SH=0.7*A Standard Labor hour for actual output            2,100 AR Actual direct labor rate $11.40 AH Actual direct labor hour            1,910 SR*(SH-AH) Labor Efficiency Variance in July $        2,090 Favourable Answer: $2,090 F