Reference no: EM131939224

Question - The Clayton Company uses a standard cost system. The following standards for direct materials and direct labor was constructed based on budgeted activity level of 20,000 units of production per month:

Standard DM and DL cost per unit of product:

Direct materials, 4 lbs at $3.50 per yard $14

Direct labor, 1.5 DLHs at $8 per DLH $12

The following actual data pertain to month of June activities:

Raw materials cost (70,200 lbs.) $263,250

Direct labor costs (29,250 hours) $228,150

Units produced 18,000 units

How well were the direct material and direct labor costs controlled in the month of June using a report?