Allan Company
Allan Company Manufactures Overalls The Company Required 600,000 M at $1

question 37

Multiple Choice

Allan Company
Allan Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labour per unit at a rate of $6.25 per hour. The materials and labour standards for manufacturing the overalls are as follows: $\begin{array}{lll}\text {Direct materials ( \( 5 \mathrm{~m} \) of denim \( @ \$ 2 \) per metre) }&\$10\\\text {Direct labour (3 hours \( @ \$ 6 \) per }&18\\\end{array}$
The company required 600,000 m at $1.95 per metre to make the 125,000 overalls.There were no beginning or ending inventories.
-Refer to Allan Company. What is the entry to record the issuance and usage of materials?

• A) Work in Process 1,170,000
• Materials Usage Variance 48,750
• Materials 1,218,750
• B) Work in Process 1,200,000
• Materials Usage Variance 50,000
• Materials 1,250,000
• C) Work in Process 1,218,750
• Materials Usage Variance 48,750
• Materials 1,170,000
• D) Work in Process 1,250,000
• Materials Usage Variance 50,000
• Materials 1,200,000

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