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Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs
Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: Labor: (4 kilograms x $10.00 per kilogram) (4 hours x $18.00 per hour) 540.00 72.00 All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July In-process beginning inventory in-process ending inventory-90% complete as to labor Units completed during the month Budgeted output ...... Purchases of materials, in kilograms (AQ) Fot. Total actual labor costs incurred Piret Direct labor hours worked (AQ) Materials purchase-price variance Increase in materials inventory in July Beginning inventory of materials none 1,000 units 7,200 units 8,000 units 30,000 $525.000 28,000 hours $3,000 unfavorable 1.500 kilograms 0 kg The direct labor flexible-budget variance for July was: : $6,600 unfavorable. . 0 $7,200 unfavorable. 0 $51,000 favorable. 0 $58,200 favorable. 0 $65,400 favorable. O
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