Mlar Corporation makes a product with the following standard costs Price or Dire
ID: 2580790 • Letter: M
Question
Mlar Corporation makes a product with the following standard costs Price or Direct materials Direct labor Variable overhead 7.7 pounds 0.1 hours e.1 hours 4.80 per pound $28.80 per hour %4.00 per hour In January the company produced 2,000 units using 16.060 pounds of the direct material and 210 dierect labor hours. During the month, the company purchased 16,900 pounds of the direct maherisl at a cost of $65910. 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 ect labortours. The direct materals purchases variance is computed when the nater as are prchased The labor rate variance for January is Multiple Choice 0S260U $273 U $273 F $260 FExplanation / Answer
Labor rate variance =Actual cost -[AH*SR]
= 4473 - [210*20]
= 4473 - 4200
= 273 U
correct option is "B"