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Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate $ 4.00 per pound $ 20.00 per hour $ 4.00 per hour Direct materials 7.7 pounds 0.1 hours 0.1 hours Direct labor Variable overhead In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost wast $756. 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 quantity variance for January is:

Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate $ 4.00 per pound $ 20.00 per hour $ 4.00 per hour Direct materials 7.7 pounds 0.1 hours 0.1 hours Direct labor Variable overhead In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost wast $756. 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 quantity variance for January is:

Managerial Accounting: The Cornerstone of Business Decision-Making
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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Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate Direct materials 7.7 pounds $ 4.00 per pound $ 20.00 per hour $ 4.00 per hour Direct labor 0.1 hours Variable overhead 0.1 hours In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. 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 quantity variance for January is: Multiple Choice $2,574 U $2,574 F
Transcribed Image Text:Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate Direct materials 7.7 pounds $ 4.00 per pound $ 20.00 per hour $ 4.00 per hour Direct labor 0.1 hours Variable overhead 0.1 hours In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. 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 quantity variance for January is: Multiple Choice $2,574 U $2,574 F
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