Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate Direct materials 2.0 pounds $ 7.00 per pound Direct labor 0.6 hours $18.00 per hour Variable overhead 0.6 hours $ 2.00 per hour In January the company produced 4,800 units using 10.240 pounds of the direct material and 2,220 direct labor-hours. During the month, the company purchased 10,810 pounds of t direct material at a cost of $76.690, The actual direct labor cost was $38.234 and the actual variable overhead cost was $11935. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases varlance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice $880 U $1,020 F $1.020 U

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Chapter6: Activity-based, Variable, And Absorption Costing
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In January the company produced 4,800 units using 10,240 pounds of the direct material and 2,220 direct labor-hours. During the month, the company purchased 10,810 pounds of the
direct material at a cost of $76,690 The actual direct labor cost was $38.234 and the actual variable overhead cost was $11,935.
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 January is:
Multiple Choice
$880 U
$1,020 F
$1,020 U
$880 F
Transcribed Image Text:In January the company produced 4,800 units using 10,240 pounds of the direct material and 2,220 direct labor-hours. During the month, the company purchased 10,810 pounds of the direct material at a cost of $76,690 The actual direct labor cost was $38.234 and the actual variable overhead cost was $11,935. 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 January is: Multiple Choice $880 U $1,020 F $1,020 U $880 F
Milar Corporation makes a product with the following standard costs:
Standard Quantity or
Standard Price or
Hours
Rate
Direct materials
2.0 pounds
$ 7.00 per pound
Direct labor
0.6 hours
$18.00 per hour
Variable overhead
0.6 hours
$ 2.00 per hour
In January the company produced 4,800 units using 10,240 pounds of the direct material and 2,220 direct labor-hours. During the month, the company purchased 10,810 pounds of the
direct material at a cost of $76,690. The actual direct labor cost was $38,234 and the actual variable overhead cost was $11,935.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases varlance is computed when the materials are purchased.
The materials price variance for January is:
Multiple Choice
$880 U
$1,020 F
S1.020 U
Transcribed Image Text:Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate Direct materials 2.0 pounds $ 7.00 per pound Direct labor 0.6 hours $18.00 per hour Variable overhead 0.6 hours $ 2.00 per hour In January the company produced 4,800 units using 10,240 pounds of the direct material and 2,220 direct labor-hours. During the month, the company purchased 10,810 pounds of the direct material at a cost of $76,690. The actual direct labor cost was $38,234 and the actual variable overhead cost was $11,935. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases varlance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice $880 U $1,020 F S1.020 U
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