Problem - Crede Manufacturing Company uses a standard cost accounting system. In 2005, 33,000 units were produced. Each unit took several pounds of direct materials and 11⁄3 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 42,000 direct labor hours. During the year, 132,000 pounds of raw materials were purchased at $0.90 per pound. All pounds purchased were used during the year.
Instructions
(a) If the materials price variance was $3,960 unfavorable, what was the standard materials price per pound?
(b) If the materials quantity variance was $2,871 favorable, what was the standard materials quantity per unit?
(c) What were the standard hours allowed for the units produced?
(d) If the labor quantity variance was $8,400 unfavorable, what were the actual direct labor hours worked?
(e) If the labor price variance was $4,470 favorable, what was the actual rate per hour?