Bulluck Corporation makes a product with the following
standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 5.50 grams $ 3.00 per gram
Direct labor 0.60 hours $ 31.00 per hour
Variable overhead 0.60 hours $ 4.00 per hour
The company reported the following results concerning this
product in July.
Actual output 5,000 units
Raw materials used in production 13,370 grams
Actual direct labor-hours 2,780 hours
Purchases of raw materials 14,100 grams
Actual price of raw materials purchased $ 3.20 per gram
Actual direct labor rate $ 13.40 per hour
Actual variable overhead rate $ 4.10 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 variable overhead efficiency variance for July is: