Latham and Chris produces crushed limestone used in highway construction, among other products. To produce the crushed limestone, the company starts with limestone rocks from its quarry in Alberta and puts the rocks through a crushing process. Suppose that on May 1, Latham and Chris had 24 tonnes of rock (75 percent complete) in the crushing process.

The cost of that beginning work-in-process inventory was $6,000. During May, the company added 288 tonnes of rock from its quarry, and at the end of the month, 15 tonnes remained in process, on average one-third complete. The cost of rocks from the quarry for the last five months had been $120 per tonne.

Labour and overhead cost during May in the rock crushing process were

$40,670. Latham and Chris uses weighted-average process costing.

1. Compute the cost per tonne of crushed rock for production in May.

2. Compute the cost of the work-in-process inventory at the end of May.

3. Suppose the flexible budget for labour and overhead was $16,000 plus

$80 per tonne. Evaluate the control of overhead and labour costs during May.