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Gail Cleaners produces a commercial cleaning compound known as Carpex. The direct materials and direct...

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Accounting

Gail Cleaners produces a commercial cleaning compound known as Carpex. The direct materials and direct labour standards for one unit of Carpex follow:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 4.10 kilograms $ 2.20 per kilogram $ 9.02
Direct labour 0.42 hour $ 8.00 per hour a 3.36
Variable overhead 0.42 hour $ 1.30 per hour 0.55
The budgeted fixed overhead cost is $14,619 per month. The denominator activity level of the allocation base is 1,596 direct labour-hours.
During the most recent month, the following activity was recorded:
a.9,100 kilograms of material were purchased at a cost of $2.22 per kilogram.
b. All of the material purchased was used to produce 3,800 units of Zoom.
c. A total of 790 hours of direct labour time was recorded at a total labour cost of 9,243.
d. The variable overhead cost was $1,580, and the fixed overhead cost was $31,713.
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