Standard Quantity or Hour 52 ounces 83 hours 83 hours Standa

Standard Quantity or Hour 5.2 ounces 8.3 hours 8.3 hours Standa Standard Price or Cost Per Direct materials per ounce $15.60 $ 14.00 per hour 4.29 5.00 per hour 1.50 Variable overhead The company reported the following results concerning this product in June Originally budgeted output Actual output Raw materials used in production 4,400 units 4,600 units 25,000 ounces 21,900 ounces 588 hours Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost s 39,500 s 14,400 s 4,100 on the basis of direct labor-hours. The direct materials purchases variance is computesd The variable overhead rate variance for June i

Solution

Variable overhead rate variance = 4100-(580*5)= $1200 U Option 3 is correct