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 1.6 hours $12.00 per hour Variable overhead 1.6 hours $ 6.00 per hour In January the company produced 5,000 units using 10,340 pounds of the direct material and 2,320 direct labor-hours. During the month, the company purchased 10,910 pounds of the direct material at a cost of $76,790. The actual direct labor cost was $38,244 and the actual variable overhead cost was $11,945. 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:

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 1.6 hours $12.00 per hour Variable overhead 1.6 hours $ 6.00 per hour In January the company produced 5,000 units using 10,340 pounds of the direct material and 2,320 direct labor-hours. During the month, the company purchased 10,910 pounds of the direct material at a cost of $76,790. The actual direct labor cost was $38,244 and the actual variable overhead cost was $11,945. 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:

Name: The materials price variance for January is:Multiple Cholce$280 U$420
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Description: The materials price variance for January is:Multiple Cholce$280 U$420 F$420 U$280 F Milar Corporation makes a product with the following standard costs:Standard Quantity orStandard Price orHoursRateDirect materials2.0 pounds$ 7.00 per poundDirect la

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

The materials price variance for January is:
Multiple Cholce
$280 U
$420 F
$420 U
$280 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
1.6 hours
$12.00 per hour
Variable overhead
1.6 hours
$ 6.00 per hour
In January the company produced 5,000 units using 10,340 pounds of the direct material and 2,320 direct labor-hours. During the month, the company purchased
10,910 pounds of the direct material at a cost of $76,790. The actual direct labor cost was $38,244 and the actual variable overhead cost was $11,945.
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 Cholce

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