Labor and Material Variances

Standard direct-labor rate ………………………. $ 15.00

Actual direct-labor rate …………………………. $ 11.50

Standard direct-labor hours ……………………… 10,000

Direct-labor quantity variance—unfavorable …… $ 9,000

Standard unit price of materials …………………. $  4.60

Actual quantity purchased and used ……………… 2,500

Standard quantity allowed for actual production … 1,850

Materials purchase price variance—favorable …... $ 500

1. Compute the actual hours worked, rounded to the nearest hour.

2. Compute the actual purchase price per unit of materials, rounded to the nearest penny.