Problem

Manny Manufacturing uses a standard cost accounting system and produced 32,000 units this past year. Each unit took several pounds of direct materials and 1.25 standard hours of direct labor at a standard hourly rate of $ 12.00. Budgeted activity was 50,000 direct labor hours. During the year, 133,000 pounds of raw materials were purchased at $0.92 per pound and used in the production. (Hint: Set up the 3-column format to compute variances; input the numbers given and back into the unknown amounts. Have fun!)

a. If the direct materials price variance was $ 3,990 favorable, what was the standard materials price per pound?

b. If the direct materials quantity variance was $ 1,710 unfavorable, what was the standard materials quantity per unit?

c. What were the standard hours allowed for the units produced?

d. If the direct labor efficiency variance was $ 7,200 unfavorable, what were the actual direct labor hours worked?

e. If the direct labor rate variance was $ 6,090 favorable, what was the actual rate per hour