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Genola Fashions began production of a new product on June 1. The company uses a standard cost system and has established the following standards for one unit of the new product:
Standard Quantityor Hours Standard Priceor Rate Standard CostDirect materials 2.5 yards $14 per yard $35.00Direct labor 1.6 hours $8 per hour $12.80
During June, the following activity was recorded regarding the new product:
a. Purchasing acquired 10,000 yards of material at a cost of $13.80 per yard.b. Production used 8,000 yards of the material to manufacture 3,000 units of the new product.c. Production reported that 5,000 direct labor-hours were worked on the new product at a cost of $43,000.
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