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Milar Corporation Makes a Product with the Following Standard Costs

question 261

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:

Understand the concept of supply chain coordination and its impact on supply chain performance.

Recognize the causes and consequences of the bullwhip effect within a supply chain.

Identify various obstacles to supply chain coordination, including pricing, incentive, and behavioral obstacles.

Understand the role of information sharing in reducing the bullwhip effect and enhancing supply chain coordination.

Definitions:

Ceramic Tile

A durable, hard surface tile made from clay that has been fired at high temperatures, used for covering floors, walls, or other surfaces.

Administrative Expense

Expenses related to the general operation of a business, including executive salaries, legal and professional fees, and office supplies.

Variable Cost

Costs that fluctuate in direct proportion to changes in levels of output or activity within a business.

Fixed Cost

Expenses that do not change in total over a certain range of activity levels or time periods, such as rent, salaries, and equipment leases.