Milar Corporation Makes a Product with the Following Standard Costs

question 103

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 Unfavorable
• B) $80 Favorable
• C) $84 Favorable
• D) $80 Unfavorable

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Definitions:

Consumption Of X

The act of using up a particular resource X or the amount of X that is used.

Units Of Y

A generic term for the measurement used to quantify the output in a given economic or mathematical model.

Utility Function

An economic model that describes how consumers rank different bundles of goods according to the levels of satisfaction or utility those bundles provide.

Horizontal Axis

In a graph or chart, the horizontal line along which the values of one variable are plotted or measured.