Milar Corporation Makes a Product with the Following Standard Costs

question 122

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 rate variance for January is:

• A) $84 U
• B) $80 F
• C) $84 F
• D) $80 U

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Definitions:

Gluteus Maximus

The largest and most superficial of the three gluteal muscles, significantly involved in the movement and stability of the hip and thigh.

Posterior Thigh

The posterior thigh refers to the back part of the thigh, encompassing the muscles, nerves, and tissues located behind the femur, primarily involved in the extension and rotation of the leg.

Semitendinosus

A muscle located in the back of the thigh, part of the hamstring group, involved in knee flexion and hip extension.

Vastus Lateralis

A muscle located on the side of the thigh, one of the components of the quadriceps femoris, involved in extending the knee.