Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials 6.5ounces$2.00per ounce$13.00Direct labor 0.2hours$23.00per hour$4.60Variable overhead 0.2hours$6.00per hour$1.20?The company reported the following results concerning this product in June.    Originally budgeted output 2,700unitsActual output 2,800unitsRaw materials used in production 19,380ouncesPurchases of raw materials 21,400ouncesActual direct labor-hours 500hoursActual cost of raw materials purchases$40,660 Actual direct labor cost$12,050 Actual variable overhead cost$3,100 ?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:

A. $550 F
B. $550 U
C. $616 F
D. $616 U


Answer: B

Business

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