Question
9 Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product
9 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 per kilogram) = $60 per unit; direct labor (3.5 hours per unit $20 per hour) = $70 per unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December: Skipped eBook In-process beginning inventory In-process ending inventory-80% complete as to labor Units completed during the period Budgeted output Purchases of materials (in kilograms) Total actual direct labor cost incurred Direct labor hours worked (AQ) Materials purchase-price variance Increase in materials inventory in December The direct labor efficiency variance for December was: None 1,140 units 7,060 units 7,740 units 49,000 $ 559,208 28,300 hours $ 10,780 favorable 6,050 kilograms
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