Question
(Appendix 10B) The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been
(Appendix 10B) The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip:
Standard Quantity or Hours | Standard Cost per Mip | |
Direct Materials | 6 board metre | $9.00 |
Direct Labour | 0.8 hours | $9.60 |
There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board metres at the total cost of $24,000. Used 12,000 board metres to produce 2,100 Mips. Used 1,700 hours of direct labour time at a total cost of $20,060. (Appendix 10B) To record the incurrence of direct labour cost and its use in production, the general ledger would include what entry to the Labour Rate Variance account?
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