Asked by Hunain Nadeem on May 12, 2024
Verified
Tharaldson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June.
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) $2,140 Unfavorable
B) $2,140 Favorable
C) $1,820 Unfavorable
D) $1,820 Favorable
Direct Materials
The raw materials directly used in the production of goods.
Direct Labor-Hours
The total time workers spend producing a product or service, directly involved in the manufacturing or production process.
Variable Overhead
Costs that fluctuate with the level of production output, such as utilities for a manufacturing plant, which increase as production increases.
- Perform assessments and calculations related to direct material price and quantity variances.
Verified Answer
Learning Objectives
- Perform assessments and calculations related to direct material price and quantity variances.
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