Question - Given the following, data, answer the following five questions:
A company produces several prodcuts. It uses the job order costing system and allocates variable overhead on the basis of direct labor hours. The standard budget for the company is to produce 550 units per month, however last month the company only produced 500 units. The cost accountant is trying to put together the variance analysis for the month, however, due to an accident, much of the data has been destroyed. What is known for last month is:
Actual total overhead for the month: $175,000
Actual pounds of raw material used: 1,950
Pounds of raw material in beginning inventory: 200
Pounds of raw material in ending inventory: 100
Standard price of raw materials per pound: $17
Direct material quantity variance: $850 F
Total direct material variance: $2,800 F
Standard direct labor hours with standard production: 3,300
Predetermined variable overhead rate: $40/DLH
Variable overhead efficiency variance: $6,000 F
Actual fixed overhead for the month: $58,000
Overall direct labor variance: $2,025 U
Actual direct labor wage rate per hour: $16.50
1. What is the standard direct material quantity per unit?
2. What was the actual price paid per unit of direct materials?
3. What was the variable overhead rate variance?
4. What was the standard direct labor rate?
5. What was the direct labor rate variance?