What is the materials price variance for june

Reference no: EM131989548

Problem

Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		7.6	ounces	$	4.00	per ounce	$	30.40
Direct labor		0.7	hours	$	10.00	per hour	$	7.00
Variable overhead		0.7	hours	$	9.00	per hour	$	6.30

The company reported the following results concerning this product in June.

Originally budgeted output	3,000	units
Actual output	2,600	units
Raw materials used in production	20,000	ounces
Purchases of raw materials	17,400	ounces
Actual direct labor-hours	3,500	hours
Actual cost of raw materials purchases	45,000
Actual direct labor cost	13,000
Actual variable overhead cost	3,500

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

What is the materials price variance for June?

Reference no: EM131989548

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