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 per kilogram) = $60 per unit; direct labor (3.5 hours per unit × $20 per hour) = $70 per 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 inventory—80% complete as to labor	1,070	units
Units completed during the period	6,920	units
Budgeted output	7,530	units
Purchases of materials (in kilograms)	45,500
Total actual direct labor cost incurred	$ 547,308
Direct labor hours worked (AQ)	27,600	hours
Materials purchase-price variance	$ 6,825	favorable
Increase in materials inventory in December	4,300	kilograms

 What is the direct labor flexible-budget variance for December?

Answer rating: 100% (QA)

To calculate the direct labor flexiblebudget variance for December we need to determine th... View the full answer