Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Shade Company adopted a standard cost system everal years ago. The standard costs for direct labor and direct materials for its single product are as
Shade Company adopted a standard cost system everal years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms * $12/kilogram) = $60/unit; direct labor (3.5 hours/unit x $20/hour) = $70/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December: In-process beginning inventory In-process ending inventory-80% complete as to labor Units completed during the period Budgeted output Purchases of materials (in kilograms) Total actual direct labor cost incurred Direct labor hours worked (AQ) Materials purchase-price variance Increase in materials inventory in December None 1,090 units 6,960 units 7,590 units 46,500 $550, 718 27,800 hours $ 7,905 favorable 4,800 kilograms The actual total cost of direct materials used in production during December (to the nearest dollar) was: Multiple Choice o $491,517. o $493,311. o $494,581. o $496,387
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started