Milar Corporation Makes a Product with the Following Standard Costs

question 189

Multiple Choice

Milar Corporation makes a product with the following standard costs: In January the company produced 4,600 units using 10,120 pounds of the direct material and 2,100 direct labor-hours. During the month, the company purchased 10,690 pounds of the direct material at a cost of $76,570. The actual direct labor cost was $38,256 and the actual variable overhead cost was $11,957.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:

• A) $1,600 Unfavorable
• B) $1,740 Favorable
• C) $1,740 Unfavorable
• D) $1,600 Favorable

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Definitions:

Claim Refusals

Instances when requests or demands are not granted or acknowledged positively, often in business or customer service contexts.

Warranty

A guarantee provided by a manufacturer or seller regarding the condition of a product and pledging to repair or replace it if necessary within a specified period.

Employee Morale

The overall outlook, attitude, satisfaction, and confidence that employees feel about their workplace.

Public Goodwill

Positive public perception or favor towards a person, organization, or brand, often built over time through ethical behavior and community engagement.