Bulluck Corporation makes a product with the following standard costs:
Standard Quantity or
Hours
Standard Price or Rate
Direct materials
3.5 grams
1.00 per gram
Direct labor
0.7 hours
$ 11.00 per hour
Variable overhead
0.7 hours
2.00 per hour
The company reported the following results concerning this product in July.
Actual output
3,000 units
Raw materials used in production
11,370 grams
Actual direct labor-hours
1,910 hours
Purchases of raw materials
12,100 grams
Actual price of raw materials purchased
$ 1.20 per gram
Actual direct labor rate
$ 11.40 per hour
Actual variable overhead rate
$ 2.10 per hour
The company applies varlable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The labor rate variance for July is: $764F, $764U, $840F, $840U