Assignment Detail

Assignment ID: FG132607736

Milar Corporation makes a product with the following standard costs:
                                       Standard Quantity or Hours              Standard Price or Rate
Direct materials                   4.5 pounds                               $ 4.00per pound
Direct labor                         0.8 hours                                $ 21.00 per hour
Variable overhead                   0.8hours                               $ 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 16,900 pounds of the direct material at a cost of $14,040. 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.
Question 1: The labor rate variance for January is:
Multiple Choice
Option 1: $401 F
Option 2: $401 U
Option 3: $2,119 U
Option 4: $2,119 F