37.Background
Kidling Co uses a standard marginal costing system for cost control of its single product.
The standard cost card for the product is:
$ per unit
Direct material 2.5 kg at $12.60 per kg 31.50
Direct labour 2 hours at $11.20 per hour 22.40
Variable production overhead 8.80
62.70
Fixed production overheads are budgeted at $160,200 per month.
Actual results for the month just ended included:
Production 6,200 units
Direct materials 15,240 kg purchased and used at a total cost of $195,920
Direct labour 12, 590 hours worked
Variable production overhead $52, 820
Fixed production overhead $158,670
Task 1
Task 2
The direct labour rate variance in the month just ended was $1 ,908 favourable.
What was the total direct labour cost in the month?
A.$139,100
B.$283,924
C.$142,916
D.$280,108
