Kahlotus Company Uses Standard Costs and a Flexible Budget for Controlling

Essay

Kahlotus Company uses standard costs and a flexible budget for controlling its service activities. In March, the company serviced 11,000 units of its product using 30,000 actual direct labor hours. The actual hourly rate was $19.00. Three direct labor hours is the standard allowance for servicing one unit of product. The standard labor rate is $19.50 per hour.