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Delta Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards have been established for the

Delta Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards have been established for the direct manufacturing costs per unit:

Direct materials (2 kg at $7.50 per kilogram)

$15.00per unitDirect labour (3 hours at $12 per hour)

$36.00per unit

Budgeted overhead for the month of April (based on expected activity of 9,000 direct labour hours) is as follows:

Variable overhead

$29,250

Fixed overhead

19,500

Total overhead

$48,750

Overhead is applied based on labour hours. The average activity per month is 9,750 direct labour hours. The company calculates overhead rates based on average activity. Results for the month of April are as follows:

Units produced

3,150

Direct materials used (6,500 kg)$44,850Direct labour (9,500 hours)

116,375

Variable overhead

28,500

Fixed overhead

20,000

Total costs

$209,725

There was no beginning or ending work in process inventory.

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