Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

J Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours 2.0 pounds 1.1 hours 1.1 hours Direct materials Direct labor

J Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours 2.0 pounds 1.1 hours 1.1 hours Direct materials Direct labor Variable overhead Standard Price or Rate $ 7.00 per pound $ 13.00 per hour $ 7.00 per hour In January the company produced 4,800 units using 10,290 pounds of the direct material and 2,270 direct labor-hours. During the month, the company purchased 10,860 pounds of the direct material at a cost of $76,740. The actual direct labor cost was $38,239 and the actual variable overhead cost was $11,940. 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: 100%
image text in transcribed
Milar Corporation makes a protuct with the foilowing standard costs: In January the company produced 4,800 units using 10,290 pounds of the direct matetial and 2.270 direct Labortheurs. During the month, the company purchosed 10,860 pounds of the direct material at a cost of 576,740 . The pctuat direct labor cost was $38,239 and the nctual variable ovorhead cost was $11,040 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance if computed when the materials are purchased. The materials price variance for January is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Risk Based-Approach

Authors: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

11th Edition

1337619455, 1337619450, 9781337670203 , 978-1337619455

More Books

Students also viewed these Accounting questions