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Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate $ 5.50 per pound $24.00 per hour $11.00 per hour Direct materials 6.0 pounds Direct labor 0.8 hours Variable overhead 0.8 hours In January the company produced 3,350 units using 13,400 pounds of the direct material and 2,800 direct labor-hours. During the month, the company purchased 16,900 pou cost of $14,160. The actual direct labor cost was $66,796 and the actual varlable overhead cost was $29,508. The company applies varlable overhead on the basis of direct labor-hours. The direct materials purchases varlance is computed when the materials are purchased. The labor rate varlance for January Is: Multiple Cholce $404 F $404 U $2.476 U $2.476 F

Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate $ 5.50 per pound $24.00 per hour $11.00 per hour Direct materials 6.0 pounds Direct labor 0.8 hours Variable overhead 0.8 hours In January the company produced 3,350 units using 13,400 pounds of the direct material and 2,800 direct labor-hours. During the month, the company purchased 16,900 pou cost of $14,160. The actual direct labor cost was $66,796 and the actual varlable overhead cost was $29,508. The company applies varlable overhead on the basis of direct labor-hours. The direct materials purchases varlance is computed when the materials are purchased. The labor rate varlance for January Is: Multiple Cholce $404 F $404 U $2.476 U $2.476 F

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate Direct materials 6.0 pounds $ 5.50 per pound Direct labor 0.8 hours $24.00 per hour Variable overhead 0.8 hours $11.00 per hour In January the company produced 3,350 units using 13,400 pounds of the direct material and 2,800 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct materlal at a cost of $14,160. The actual direct labor cost was $66,796 and the actual varlable overhead cost was $29,508. The company applies varlable overhead on the basis of direct labor-hours. The direct materlals purchases varlance is computed when the materlals are purchased. The labor rate varlance for January Is: Multiple Choice $404 F $404 U $2.476 U $2.476 F
Transcribed Image Text:Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate Direct materials 6.0 pounds $ 5.50 per pound Direct labor 0.8 hours $24.00 per hour Variable overhead 0.8 hours $11.00 per hour In January the company produced 3,350 units using 13,400 pounds of the direct material and 2,800 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct materlal at a cost of $14,160. The actual direct labor cost was $66,796 and the actual varlable overhead cost was $29,508. The company applies varlable overhead on the basis of direct labor-hours. The direct materlals purchases varlance is computed when the materlals are purchased. The labor rate varlance for January Is: Multiple Choice $404 F $404 U $2.476 U $2.476 F
Gipple Corporation makes a product that uses a materlal with the quantity standard of 7.8 grams per unit of output and the price standard of $6.50 per gram. In January the company produced 3,900 units using 25,370 grams of the direct material. During the month the company purchased 27,900 grams of the direct material at $6.70 per gram. The direct materlals purchases variance is computed when the materials are purchased. The materlals price varlance for January Is: Multiple Cholce $6,084 F $5.580 U $6,084 U $5,580 F
Transcribed Image Text:Gipple Corporation makes a product that uses a materlal with the quantity standard of 7.8 grams per unit of output and the price standard of $6.50 per gram. In January the company produced 3,900 units using 25,370 grams of the direct material. During the month the company purchased 27,900 grams of the direct material at $6.70 per gram. The direct materlals purchases variance is computed when the materials are purchased. The materlals price varlance for January Is: Multiple Cholce $6,084 F $5.580 U $6,084 U $5,580 F
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