The Costmore Company uses standard costing and has established the following standards for direc materials and direct labor for each unit it makes:
$\begin{array}{ll}
\text { Direct Materials } & 3 \text { gallons at } \$ 5 \text { per gallon } \
\text { Direct Labor } & 1 \text { hour at } \$ 12 \text { per hour }
\end{array}$
During July, the company made 4,000 units of product and used 13,000 gallons. The actual price paid for materials was $5.20 per gallon.
Direct Labor used was 3,600 hours and workers were paid $11.75 per hour. An analysis would indicate

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The Answer of The Costmore Company uses standard costing and has established the following standards for direc materials and direct labor for each unit it makes:
$\begin{array}{ll}
\text { Direct Materials } & 3 \text { gallons at } \$ 5 \text { per gallon } \
\text { Direct Labor } & 1 \text { hour at } \$ 12 \text { per hour }
\end{array}$
During July, the company made 4,000 units of product and used 13,000 gallons. The actual price paid for materials was $5.20 per gallon.
Direct Labor used was 3,600 hours and workers were paid $11.75 per hour. An analysis would indicate

The Costmore Company Uses Standard Costing and Has Established the Following