Hurren Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 4.9 grams $4.00 per gram $19.60 Direct labor 1.2 hours $14.00 per hour $16.80 Variable overhead 1.2 hours $9.00 per hour $10.80 The company reported the following results concerning this product in June. Originally budgeted output 6,300 units Actual output 6,200 units Raw materials used in production 28,430 grams Actual direct labor-hours 5,000 hours Purchases of raw materials 32,300 grams Actual price of raw materials purchased $4.10 per gram Actual direct labor rate $14.90 per hour Actual variable overhead rate $8.70 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 quantity variance for June is: $7,995 U $7,800 U $7,800 F $7,995 F
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