Reference no: EM132549689

Apple Corp. produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor hours. The standard cost card for one unit of product is as follows:

(1) (2)

                                                                         Standard            Standard         Standard

                                                                     Quantity                   Price                         Cost

Inputs or Hours or Rate (1) x (2)

Direct Materials                                          6 oz.               $0.50 per oz.             $3.00

Direct Labor                                               0.6 hours            $30.00 per hour          18.00

Variable Manufacturing Overhead                         0.6 hours             $10.00 per hour          6.00

Total Standard Cost Per Unit $27.00

During June, 2000 units were produced. The costs associated with June's operations were as follows:

Materials purchased: 18,000 oz. at $0.60 per oz.....................$10,800

Materials used in production 18,000 oz. .............................. -

Direct Labor: 1,100 hours at $30.50 per hour.........................$33,500

Variable Manufacturing overhead costs incurred.....................$12,980

Required:

Question 1: Compute the direct materials, direct labor, and variable manufacturing overhead variances.