Milar Corporation Makes a Product with the Following Standard Costs

question 466

Multiple Choice

Milar Corporation makes a product with the following standard costs: In January the company produced 3,310 units using13,240 pounds of the direct material and 2,768 direct labor-hours. During the month, the company purchased 14,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $54,960 and the actual variable overhead cost was $23,860.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 labor rate variance for January is:

• A) $400 Favorable
• B) $400 Unfavorable
• C) $2,000 Unfavorable
• D) $2,000 Favorable

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Definitions:

Prostate

A gland in the male reproductive system that surrounds the urethra near the bladder, contributing fluid to semen.

Seminiferous Tubules

Seminiferous tubules are tightly coiled structures within the testes where spermatogenesis, the production of sperm, occurs.

Testes

Male gonads that produce sperm and the male sex hormones.

Scrotum

Saclike structure of a male that houses the testes.