21.

Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 2.0 pounds 0.8 hours 0.8 hours Standard Price or Rate $ 7.00 per pound $16.00 per hour $ 4.00 per hour In January the company produced 4,400 units using 10,140 pounds of the direct material and 2,120 direct labor- hours. During the month, the company purchased 10,710 pounds of the direct material at a cost of $76,590. The actual direct labor cost was $38,254 and the actual variable overhead cost was $11,955. 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 materials price variance for January is: Multiple Choice o $1,480 o $1,620 F o $1,620 U o $1,480 U