McAllister, Inc. employs a normal costing system. The following information pertains to the year just ended. •Total manufacturing costs were $1,300,000. •Cost of goods manufactured was $1,265,000. •Applied manufacturing overhead was 30 percent of total manufacturing costs. •Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost. •Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31. 1. Compute the total direct-labor cost for the year.
2. Calculate the total cost of direct material used during the year.
3. Compute the value of the company’s work-in-process inventory on December 31.

Doogan corporation makes a product with the following standard costs: standard quantity or hours standard price or rate direct materials 2.0 grams $ 7.00 per gram direct labor 1.6 hours $ 12.00 per hour variable overhead 1.6 hours $ 6.00 per hour the company produced 5,000 units in january using 10,340 grams of direct material and 2,320 direct labor-hours. during the month, the company purchased 10,910 grams of the direct material at $7.30 per gram. the actual direct labor rate was $12.85 per hour and the actual variable overhead rate was $5.80 per hour. the company applies variable overhead on the basis of direct labor-hours. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for january is: