Majer corporation makes a product with the following standard costs:
standard quantity
or hours standard price or
rate standard cost per unit
direct materials 6.1 ounces $ 2.00 per ounce $ 12.20
direct labor 0.7 hours $ 12.00 per hour $ 8.40
variable overhead 0.7 hours $ 2.00 per hour $ 1.40
the company reported the following results concerning this product in february.
originally budgeted output 5,400 units
actual output 5,700 units
raw materials used in production 33,100 ounces
actual direct labor-hours 2,030 hours
purchases of raw materials 28,300 ounces
actual price of raw materials $ 17.10 per ounce
actual direct labor rate $ 7.60 per hour
actual variable overhead rate $ 1.10 per hour
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 february is:
multiple choice
$1,827 f
$1,832 f
$1,827 u
$1,832 f