=+11-43 KK Direct materials and manufacturing labour variances, solving unknowns (CPA, adapted)

OBJECTIVE 4 At the beginning of May, Cort Ltd began the manufacture of a new wireless modem known as DataSum. The company installed a standard costing system to account for manufacturing costs. The standard costs for a unit of DataSum follow:

Direct materials (3 kg at $5 per kilogram) $15.00 Direct manufacturing labour (1/2 hour at $20 per hour) 10.00 Manufacturing overhead (75% of direct manufacturing labour costs) 7.50

$32.50 The following data were obtained from Cort Ltd’s records for the month of May:

Debit Credit Revenues $125 000