Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms × $12.00/kilogram) = $60.00/unit; direct labor (3.5 hours/unit × $20.00/hour) = $70.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December: In-process beginning inventory None In-process ending inventory—80% complete as to labor 960 units Units completed during the period 6,700 units Budgeted output 7,200 units Purchases of materials (in kilograms) 40,000 Total actual direct labor cost incurred $ 528,410 Direct labor hours worked (AQ) 26,500 hours Materials purchase-price variance $ 1,600 favorable Increase in materials inventory in December 1,550 kilograms The direct labor efficiency variance for December, to the nearest dollar, was:
Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms × $12.00/kilogram) = $60.00/unit; direct labor (3.5 hours/unit × $20.00/hour) = $70.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December: In-process beginning inventory None In-process ending inventory—80% complete as to labor 960 units Units completed during the period 6,700 units Budgeted output 7,200 units Purchases of materials (in kilograms) 40,000 Total actual direct labor cost incurred $ 528,410 Direct labor hours worked (AQ) 26,500 hours Materials purchase-price variance $ 1,600 favorable Increase in materials inventory in December 1,550 kilograms The direct labor efficiency variance for December, to the nearest dollar, was:
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...
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Shade Company adopted a
In-process beginning inventory | None | |||
In-process ending inventory—80% complete as to labor | 960 | units | ||
Units completed during the period | 6,700 | units | ||
Budgeted output | 7,200 | units | ||
Purchases of materials (in kilograms) | 40,000 | |||
Total actual direct labor cost incurred | $ | 528,410 | ||
Direct labor hours worked (AQ) | 26,500 | hours | ||
Materials purchase-price variance | $ | 1,600 | favorable | |
Increase in materials inventory in December | 1,550 | kilograms | ||
The direct labor efficiency variance for December, to the nearest dollar, was:
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