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hade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as

hade 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 $12.00/kilogram) = $60.00/unit. Direct labor (3.5 hours $20.00 per hour) = $70.00/unit. All materials were issued at the beginning of processing. The operating data shown below were taken from the records for December:

In-process beginning inventory None
In-process ending inventory - 80% complete as to labor 960 units
Units completed during the period 6,700 units
Budgeted output 7,200 units
Purchases of materials (in kilograms) 40,000
Total actual direct labor cost incurred $528,410
Direct labor hours worked (AQ) 26,500 hours
Materials purchase-price variance $1,600 favorable
Increase in materials inventory in December 1,550 kilograms

The direct labor rate variance was favorable and amounted to:

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