Help Save Exit Submit Bulluck Corporation makes a product wi

Help Save& Exit Submit Bulluck Corporation makes a product with the following standard costs Standard Quantity or Standard Price or Rate Direct materials Direct labor Variable overhead Hours 3.5 grams 1.00 per gram 0.7 hours $11.00 per hour 0.7 hours 2.00 per hour ook The company reported the following results concerning this product in July Actual output Raw materials used in production 3,000 units 11,370 grams 1,910 hours 12,100 grams Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased$/1.20 per gram Actual direct labor rate Actual variable overhead rate 1L.40 per hour $ 2.10 per hour purchases veriance is computed The company applies variable overhead on the basis of direct labos hours. The direct materials Prev23 of 33 EENext >

Solution

Materials quantity variance = SP * (AQ-SQ) = 1.00 * (11370-(3000*3.50))

=1*(11370-10500)

=870

=870 U

Answer is option D 870 U