Tidd Corporation makes a product with the following standard costs:
Inputs Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 4.7 grams $3.00 per gram $14.10 Direct labor 0.8 hours $16.00 per hour $12.80 Variable overhead 0.8 hours $4.00 per hour $3.20
The company reported the following results concerning this product in November.
Originally budgeted output 8,900 units Actual output 9,000 units Raw materials used in production 44,810 grams Purchases of raw materials 47,300 grams Actual direct labor-hours 7,870 hours Actual cost of raw materials purchases $132,440 Actual direct labor cost $125,133 Actual variable overhead cost $29,906
The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.
The variable overhead rate variance for November is: (Do not round intermediate calculations.)
$7,530 U
$7,028 U
$7,530 F
$7,028 F