Milar Corporation Makes a Product with the Following Standard Costs

question 168

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 rate variance for January is:

• A) $84 U
• B) $80 F
• C) $84 F
• D) $80 U

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Definitions:

Harshness

The quality of being extremely strict or severe in conditions or treatment.

Perceptual Biases

Cognitive biases that result from the simplification of processing social realities, often leading to distorted interpretations.

Central Tendency

The tendency to assign most ratees to middle-range job performance categories.

Halo Effect

A cognitive bias where the perception of one positive trait influences the perception of other traits.