Oladipo Corporation makes a product with the following standard costs: Standard Quantity Standard Price Standard Cost
(or Hours) (or Rate) per unit
Direct materials 6.5 pounds $7.00 per pound $45.50 per unit
Direct labor 0.6 hours $24.00 per hour $14.40 per unit
Variable overhead 0.6 hours $4.00 per hour $2.40 per unit
In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
a. 4,731 F.
b. 0 4,560 U.
c. 0
D. 4,560 F.
E. 0 4,731 U.