# Kartman Corporation makes a product with the following

Kartman Corporation makes a product with the following standard costs:

 Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.5 pounds \$ 7.00 per pound \$ 45.50 Direct labor 0.6 hours \$ 24.00 per hour \$ 14.40 Variable overhead 0.6 hours \$ 4.00 per hour \$ 2.40

In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of \$170,180. The actual direct labor cost was \$57,021 and the actual variable overhead cost was \$8,931.

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 June is:

Multiple Choice

\$210 U

\$210 F

\$229 F

\$229 U

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