Milar Corporation Makes a Product with the Following Standard Costs

question 73

Multiple Choice

Milar Corporation makes a product with the following standard costs: 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:

• A) $2,640 U
• B) $2,574 F
• C) $2,640 F
• D) $2,574 U

---

Definitions:

Assessment Framework

A structured approach used to evaluate or measure specific attributes, skills, or knowledge.

White Blood Cell Count

A measurement of the number of white blood cells in a volume of blood, indicative of immune system status.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, a critical vital sign indicating the health of the cardiovascular system.

Older Adult Client

A term used in healthcare and service provision referring to an individual typically aged 65 years or older, often requiring tailored medical or social care.