Question

Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 10.0 pounds 0.8 hours 0.8 hours Standard Price or Rate $ 9.50 per pound $ 32.00 per hour $ 15.00 per hour In January the company produced 3,430 units using 13,720 pounds of the direct material and 2,864 direct labor-hours. During the month, the company purchased 14,480 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $91,236 and the actual variable overhead cost was $41,188. 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 labor rate variance for January is: Multiple Choice $3,428 U

          Milar Corporation makes a product with the following standard costs:
Direct materials
Direct labor
Variable overhead
Standard
Quantity or
Hours
10.0 pounds
0.8 hours
0.8 hours
Standard Price or Rate
$ 9.50 per pound
$ 32.00 per hour
$ 15.00 per hour
In January the company produced 3,430 units using 13,720 pounds of the direct material and 2,864 direct labor-hours. During the
month, the company purchased 14,480 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $91,236
and the actual variable overhead cost was $41,188.
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 labor rate variance for January is:
Multiple Choice
$3,428 U

Added by Richard A.

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