Boise Corporation uses a standard cost system to record transactions related to its manufacturing operations. The company has established the following standards for one unit of output of its product. BOISE CORPORATION STANDARDS TO PRODUCE ONE UNIT OF PRODUCT Direct Materials Direct Labor: Variable Manufacturing Overhead: 5 pounds at $2.00 per pound 1 hour at $12.50 per hour Applied on the basis of direct labor hours used at a rate of $15.00 per direct labor hour Applied on the basis of direct labor hours used at a rate of $9.50 per direct labor hour (based on capacity of 25,000 hours) Fixed Manufacturing Overhead: The company actually placed 22,000 units into production during the period with the following actual costs BOISE CORPORATION ACTUAL COSTS FOR CURRENT PERIOD Direct Materials Purchased (120,000 pounds) Direct Materials Used (105,000 pounds) Direct Labor (22,300 hours) Manufacturing Overhead (58% variable) 252,000 275,000 560,000 The company had no beginning inventories on hand. 80% of the current period production was completed and transferred to finished goods inventory, 75% of the amount in finished goods inventory was sold on credit during the current period for $800,000 Boise Corporation uses a standard cost system to record transactions related to its manufacturing operations. The company has established the following standards for one unit of output of its product. BOISE CORPORATION STANDARDS TO PRODUCE ONE UNIT OF PRODUCT Direct Materials Direct Labor: Variable Manufacturing Overhead: 5 pounds at $2.00 per pound 1 hour at $12.50 per hour Applied on the basis of direct labor hours used at a rate of $15.00 per direct labor hour Applied on the basis of direct labor hours used at a rate of $9.50 per direct labor hour (based on capacity of 25,000 hours) Fixed Manufacturing Overhead: The company actually placed 22,000 units into production during the period with the following actual costs BOISE CORPORATION ACTUAL COSTS FOR CURRENT PERIOD Direct Materials Purchased (120,000 pounds) Direct Materials Used (105,000 pounds) Direct Labor (22,300 hours) Manufacturing Overhead (58% variable) 252,000 275,000 560,000 The company had no beginning inventories on hand. 80% of the current period production was completed and transferred to finished goods inventory, 75% of the amount in finished goods inventory was sold on credit during the current period for $800,000