Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 3.0 ounces $ 7.50 per ounce $ 22.50 Direct labor 0.6 hours $ 13.50 per hour $ 8.10 Variable overhead 0.6 hours $ 6.00 per hour $ 3.60 The company reported the following results concerning this product in February. Originally budgeted output 7,600 units Actual output 7,400 units Raw materials used in production 22,040 ounces Actual direct labor-hours 4,640 hours Purchases of raw materials 23,640 ounces Actual price of raw materials $ 7.25 per ounce Actual direct labor rate $ 12.10 per hour Actual variable overhead rate $ 5.10 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 materials price variance for February is:homeworklib
