Milar Corporation Makes a Product with the Following Standard Costs

question 178

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 labor rate variance for January is:

• A) $260 U
• B) $273 U
• C) $260 F
• D) $273 F

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Definitions:

Revised Model Business Corporation Act

An updated framework intended to standardize and guide the law governing corporations in the United States.

Registered Agent

An individual or business entity authorized to accept legal documents on behalf of a corporation or LLC, facilitating legal processes.

Incorporators

Individuals or entities involved in the legal process of forming a corporation, responsible for its initial setup and registration.

Alien Corporation

A business that is incorporated in a foreign country.