PROBLEM # 1
Silmon Corporation makes a product with the following standard costs:
In June the company produced 4,200 units using 21,830 grams of the direct material and 2,580 direct labor-hours.
During the month the company purchased 24,100 grams of the direct material at a price of $6.80 per gram. The actual
direct labor rate was $14.60 per hour and the actual variable overhead rate was $3.90 per hour. The materials price
variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.