Tres Company manufactures one product. Standard costs for each unit of the product follow:
Materials: 5 gallons at $1.15..............................$ 5.75
Direct labor: 1 hour at $18.................................18.00
Manufacturing overhead: 0.5 hour at $18.................9.00
Total standard costs per unit.............................$32.75
During the month of June 2016, 1,000 units of product were manufactured. At the end of the month, the following data was available:
a. The total materials variance was $38 favorable.
b. The materials quantity variance was $115 unfavorable.
c. The labor rate variance was $1,050 unfavorable.
d. Actual hours worked amounted to 1,050.
INSTRUCTIONS
Answer the following questions. Show all computations.
1. What was the actual total materials cost?
2. How many units of raw material were used?
3. What was the amount of materials price variance?
4. What was the actual labor rate per hour?
5. What was the actual labor cost for the month?
6. What was the amount of labor time variance?
Analyze:
What was the cost incurred per gallon of raw materials? (Round to nearest cent.)