Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. shade company adopted a standard cost system sever

Shade Company adopted a standard cost system several years ago. The standard costs for direct...

50.1K

Verified Solution

Question

Accounting

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 None
In-process ending inventory80% complete as to labor 970 units
Units completed during the period 6,720 units
Budgeted output 7,230 units
Purchases of materials (in kilograms) 40,500
Total actual direct labor cost incurred $ 530,138
Direct labor hours worked (AQ) 26,600 hours
Materials purchase-price variance $ 2,025 favorable
Increase in materials inventory in December 1,800 kilograms

The direct labor rate variance for December, to the nearest dollar, was:

Multiple Choice

  • $1,862 favorable.

  • $5,922 favorable.

  • $8,062 unfavorable.

  • $24,682 unfavorable.

  • $59,682 unfavorable.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students