Milar Corporation Makes a Product with the Following Standard Costs

question 146

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 efficiency variance for January is:

• A) $36 Unfavorable
• B) $40 Favorable
• C) $36 Favorable
• D) $40 Unfavorable

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Definitions:

In Vitro Fertilization

A medical procedure whereby an egg is fertilized by sperm in a lab dish, and the resulting embryo is transferred to the uterus for pregnancy.

Abnormalities

Deviations from the normal or typical function, structure, or behavior, often indicating a medical or psychological condition.

Genetic Counseling

A service that provides information and support to people who have or may be at risk for genetic disorders.

Genetic Disorders

Conditions caused by abnormalities in an individual's DNA, which can result in physical, mental, or metabolic anomalies.