Milar Corporation Makes a Product with the Following Standard Costs

question 33

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 U
• B) $40 F
• C) $36 F
• D) $40 U

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Definitions:

Justification of Effort

A phenomenon where individuals assign greater value to outcomes they have put effort into achieving.

Psychoanalysis

A theory of personality and a method of psychotherapy, originally formulated by Sigmund Freud, that emphasizes unconscious motives and conflicts.

Self-acceptance

The recognition and acceptance of one's own strengths and weaknesses, leading to a positive self-concept and the ability to feel comfortable with oneself.

Self-fulfillment

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.