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Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as
Shade 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 (4.70 kilograms x $11.00/kilogram) = $51.70/unit. Direct labor (3.30 hours x $18.00 per hour) = $59.40/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 in-process ending inventory-80.00% complete as to labor Units completed during he 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 905 units 6,270 units 6,750 37,000 $495,403 24,500 hours $1,460 favorable 1,468 kilograms The direct labor efficiency variance for December is: $25,556 unfavorable $54,403 favorable $25,556 favorable $54,403 unfavorable $79,959 unfavorable
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