Dobbs Manufacturing Company uses a standard cost accounting system. In 2010, 50,000 units were produced. Each unit took several pounds of idrect materials and 2 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 96,000 direct labor hours. During the year, 200,000 pounds of raw materials were purchased at $1.00 per pound. All materials purchased were used during the year.
Instructions:
a) If the materials price variance was $8,000 unfavorable, what what the standard materials price per pound?
b) If the materials quantity was $24,000 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 $10,800 unfavorable, what were the actual direct labor hours worked?
e) if the labor price variance was $25,225 favorable, what was the actual rate per hour?