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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 (5 kilograms * $12/kilogram) = $60/unit; direct labor (3.5 hours/unit * $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 1,020 units 6,820 units 7,380 units 43,000 $538,748 27,100 hours $ 4,300 favorable 3,050 kilograms The direct labor efficiency variance for December, to the nearest dollar, was: Multiple Choice $3,252 favorable. increase in materials livercury 11 December ,00 Kilograms The direct labor efficiency variance for December, to the nearest dollar, was: Multiple Choice $3,252 favorable. O $4,228 favorable. $7,480 unfavorable. $59.650 unfavorable
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