Grandma's Attic Company Produces Soft Pillows Made from Goose Down

Essay

Grandma's Attic Company produces soft pillows made from goose down.The company uses a standard cost system and has set the following standards for materials and labor for each pillow:
During the month,the company produced 1,000 goose down pillows.Actual geese purchased were 5,100,at $4 per goose.Actual fabric purchased was 2,900 yards at $2.10 per yard.There were no beginning or ending inventories of geese or fabric.Actual direct labor was 5,200 hours at $7.75 per hour.