Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours 6.5 pounds 0.8 hours Standard Price or Rate Direct materials Direct labor $ 6.00 per pound $25.00 per hour $11.50 per hour Variable overhead 0.8 hours In January the company produced 3,360 units using 13,440 pounds of the direct material and 2,808 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,200. The actual direct labor cost was $69,795 and the actual variable overhead cost was $30.940. 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 Cholce $405 F SA05 U E Windows Update $2.595U Countdown to goodness.
Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours 6.5 pounds 0.8 hours Standard Price or Rate Direct materials Direct labor $ 6.00 per pound $25.00 per hour $11.50 per hour Variable overhead 0.8 hours In January the company produced 3,360 units using 13,440 pounds of the direct material and 2,808 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,200. The actual direct labor cost was $69,795 and the actual variable overhead cost was $30.940. 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 Cholce $405 F SA05 U E Windows Update $2.595U Countdown to goodness.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...
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