Darren Company Adopted a Standard Cost System Several Years Ago $\begin{array}{llcc} \text { Material:8 kilograms@\$5 per kilogram } & \$40.00\\ \text { Labor:6hours@\$8.20perhour } &\$49.20 \\\end{array}$

question 27

Essay

Darren Company adopted a standard cost system several years ago. The standard costs for the prime costs of its single product are as follows:
$\begin{array}{llcc} \text { Material:8 kilograms@\$5 per kilogram } & \$40.00\\ \text { Labor:6hours@\$8.20perhour } &\$49.20 \\\end{array}$

The following operating data were taken from the records for November:
$\begin{array}{lc}\text { Units completed } & 5,600 \text { units } \\\text { Budgeted output } & 6,000 \text { units } \\\text { Purchase of materials } & 50,000 \text { kilograms }\\\text { Total actual labor costs}&\$ 300,760 \\\text { Actual labor hours}&36,50 \text { hours}\\\text { Material efficiency (quantity) variance } & \$ 1,500 \text { Unfavorable } \\\text { Total material variance } & \$ 750 \text {unfavorable }\end{array}$
Required:
Prepare the journal entries to record the following:
a. Purchase and use of direct materials (Assume materials are used as purchased and no inventory is maintained).
b. Recognition of direct labor.

---

Definitions:

REM Sleep

A stage of sleep characterized by rapid eye movements, vivid dreaming, and heightened brain activity.

Rapid Eye Movements

Quick, jerky movements of the eyes that occur during certain stages of sleep, associated with dreaming.

Muscle Tone

Muscle tone is the continuous and passive partial contraction of muscles, which helps maintain posture and readiness for action.

Medulla

A section of the brainstem crucial for autonomic functions such as breathing, heart rate, and blood pressure.