Milar Corporation Makes a Product with the Following Standard Costs

question 137

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 variable overhead efficiency variance for January is:

• A) $36 U
• B) $40 F
• C) $36 F
• D) $40 U

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Definitions:

Reselling Products

The act of selling a product again, often after buying it from the original seller or manufacturer at a discounted rate.

In-store Demonstrations

Live presentations of a product's functionality and benefits conducted within a retail environment to attract customers and boost sales.

Promote Products

Marketing actions taken to increase awareness and sales of a product or service.

Distributor's Salespeople

Personnel employed by a distributor who are responsible for promoting and selling the distributor's products to retailers or end customers.