ZZZZZZ Company Produces Soft Pillows Made from Goose Down During the Month,the Company Produced 1,000 Goose Down Pillows

Essay

ZZZZZZ Company produces soft pillows made from goose down.The company uses a standard cost system and has set the following standards for materials and labour for each pillow: $\begin{array}{lr}\text { Feathers from } 5 \text { large white geese ( } 5 \text { geese }(0) \$ 5&\$25\\\text { per goose) }\\\text { Fabric to make pillow cases ( } 3 \mathrm{~m} @ \$ 2 \text { per }&6\\\text { metre) }\\\text { Direct labour (5 hours @ } \$ 8 \text { per hour) }&40\\\text { Total prime cost }&\$71\end{array}$
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 m at $2.10 per metre.There were no beginning or ending inventories of geese or fabric.Actual direct labour was 5,200 hours at $7.75 per hour.