During the current month the production and cost reports reflected the following information: Beginning units in process. ........................... None Units finished. . . ................................... 9,500 Units in process, end of month . ....................... None Direct labor hours worked . ........................... 20,000 Pounds of material purchased . . ....................... 10,000 Pounds of materials used. . ........................... 9,400 Cost of direct labor . . ............................... $178,000 Cost of materials purchased........................... $42,000 On the basis of this information: 1. Prepare a standard cost summary. 2. Calculate the materials (use the materials purchase price variance) and labor cost variances, and indicate whether they are favorable or unfavorable, using Vanderbeck, Edward J.; Mitchell, Maria R.. Principles of Cost Accounting (p. 463). Cengage Learning. Kindle Edition.
