25-3A

Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017,10,600suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was15,000direct labor hours. All materials purchased were used.

Cost Element

Standard (per unit)

Actual

Direct materials8yards at $4.10per yard$332670for85,300yards ($3.90per yardDirect labor120hours at $13.00per hour$179816for13,520hours ($13.30per hourOverhead1.20hours at $6.50per hour (fixed $4.00; variable $2.50)$48,300fixed overhead $36,500variable overhead