Topaz Company produces a single product. The company has set standards as follows for materials and labor:

During the past month, the company purchased 6,000 pounds of direct materials at a cost of $16,500.
All of this material was used in the production of 1,400 units of product. Direct labor cost totaled $28,500 for the month. The following variances have been computed:
Materials quantity variance . . . . . . . . $1,200 U
Total materials variance . . . . . . . . . . . . $300 F
Labor efficiency variance . . . . . . . . . $4,500 F

Required:
1. For direct materials:
a. Compute the standard price per pound for materials.
b. Compute the standard quantity allowed for materials for the month's production.
c. Compute the standard quantity of materials allowed per unit of product.
2. For direct labor:
a. Compute the actual direct labor cost per hour for the month.
b. Compute the labor ratevariance.

Transcribed Image Text:

Direct Materials Direct Standard quantity or hours per unit Standard price or rate.... .. ? per pound 9 per hour Standard cost per unit . . .. Labor 2.5 hours $22.50 ? pounds