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Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate $ 4.00 per pound 4.5 pounds 0.8 hours Direct materials Direct labor $21.00 per hour Variable overhead 0.8 hours $ 9.50 per hour In January the company produced 3,320 units using 13,280 pounds of the direct material and 2,776 direct labor-hours. During the month, the company purchased 14,040 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $57,895 and the actual variable overhead cost was $25,260. 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:

Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate $ 4.00 per pound 4.5 pounds 0.8 hours Direct materials Direct labor $21.00 per hour Variable overhead 0.8 hours $ 9.50 per hour In January the company produced 3,320 units using 13,280 pounds of the direct material and 2,776 direct labor-hours. During the month, the company purchased 14,040 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $57,895 and the actual variable overhead cost was $25,260. 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:

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 2PB: Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units...
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Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate $ 4.00 per pound 4.5 pounds 0.8 hours Direct materials Direct labor $21.00 per hour Variable overhead 0.8 hours $ 9.50 per hour In January the company produced 3,320 units using 13,280 pounds of the direct material and 2,776 direct labor-hours. During the month, the company purchased 14,040 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $57,895 and the actual variable overhead cost was $25,260. 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:
Transcribed Image Text:Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate $ 4.00 per pound 4.5 pounds 0.8 hours Direct materials Direct labor $21.00 per hour Variable overhead 0.8 hours $ 9.50 per hour In January the company produced 3,320 units using 13,280 pounds of the direct material and 2,776 direct labor-hours. During the month, the company purchased 14,040 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $57,895 and the actual variable overhead cost was $25,260. 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:
The labor rate variance for January is: Multiple Cholce $401 F $401 U $2,119 U $2,119 F
Transcribed Image Text:The labor rate variance for January is: Multiple Cholce $401 F $401 U $2,119 U $2,119 F
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