13.

Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity Standard Price or or Hours Rate 6.0 pounds $ 5.50 per pound 0.8 hours $24.00 per hour 0.8 hours $11.00 per hour In January the company produced 3,350 units using 13,400 pounds of the direct material and 2,800 direct labor- hours. During the month, the company purchased 14,160 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $66,796 and the actual variable overhead cost was $29,508. 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: Multiple Choice $404E $404 $404 U $2,476U $2,476E