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Kibodeaux Corporation makes a product with the following standard costs:

The company budgeted for production of 3,300 units in June, but actual production was 3,400 units. The company used 33,240 liters of direct material and 320 direct labor-hours to produce this output. The company purchased 35,900 liters of the direct material at $4.90 per liter. The actual direct labor rate was $22.70 per hour and the actual variable overhead rate was $2.70 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 materials price variance for June is:

A. $3,332 F
B. $3,590 U
C. $3,332 U
D. $3,590 F

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M952255

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