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 kilograms $ per kilogram $
Direct labour hour $ per hour a
Variable overhead hour $ per hour
The budgeted fixed overhead cost is $ per month. The denominator activity level of the allocation base is direct labourhours.
During the most recent month, the following activity was recorded:
a kilograms of material were purchased at a cost of $ per kilogram.
b All of the material purchased was used to produce units of Zoom.
c A total of hours of direct labour time was recorded at a total labour cost of
d The variable overhead cost was $ and the fixed overhead cost was $
