# Question: On May 1 Athens Inc began the manufacture of a

On May 1, Athens Inc. began the manufacture of a new mechanical device known as Snap. The company installed a standard cost system in accounting for manufacturing costs. The standard direct materials and labor costs for a unit of Snap follow:
Raw materials (5 lb @ \$1 per lb) . . . . . . . . . . . . . . . . . . . . . \$ 5
Direct labor (1 hr @ \$8 per hr). . . . . . . . . . . . . . . . . . . . . . . 8
......................... \$13
The following data came from Athens’ records for May:
Units
Actual production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Units sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500
The amount shown above for the materials price variance is applicable to raw materials purchased during May.
Required:
Compute each of the following items for Athens for May. Show computations in good form.
1. Standard quantity of raw materials allowed (in pounds) for actual production.
2. Actual quantity of raw materials used (in pounds).
3. Standard direct labor hours allowed.
4. Actual direct labor hours worked.
5. Actual direct labor rate.

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