# Question: Topaz Company makes one product and has set the following

Topaz Company makes one product and has set the following standards for materials and labor:
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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 . . . . . . . . . . . . . . . \$1,200U
Total materials spending 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 monthâ€™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 rate variance.

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