Brenton Labs, Inc. (Ch 10)

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Price Standard Standard Quantity or Rate Cost Direct materials 2.40 ounces $18.00 per ounce 43.20 Direct labor 0.70 hours $14.00 per hour 9.80 Variable manufacturing overhead 0.70 hours 3.00 per hour 2.10 55.10 During November, the following activity was recorded relative to production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $198,000. 3,200 ounces of b. There was no beginning inventory of materials; however, at the end of the month, material remained in ending inventory. production of Fludex. During November, they c. The company employs 20 lab technicians to work on the per hour. labor-hours. Variable worked an average of 160 hours at an average rate of $12.00 the basis of direct d. Variable manufacturing overhead is assigned to Fludex on manufacturing overhead costs during November totaled $4,800. e. During November, 3,600 good units of Fludex were produced