1. The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys:

Quantity of direct materials used	4,200 lbs.
Actual unit price of direct materials	$3.80 per lb.
Units of finished product manufactured	1,010 units
Standard direct materials per unit of finished product	4 lbs.
Direct materials quantity varianceunfavorable	$624
Direct materials price variancefavorable	$420

Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places.

Product finished		units
Standard finished product for direct materials used		units
Deficiency of finished product for materials used		units
Standard cost for direct materials	$	per unit

2. The following data relate to labor cost for production of 5,500 cellular telephones:

Actual:	3,710 hrs. at $13.60
Standard:	3,650 hrs. at $13.80

a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Rate variance	$	Favorable
Time variance	$	Unfavorable
Total direct labor cost variance	$	Unfavorable

3. The following data relate to factory overhead cost for the production of 4,000 computers:

Actual:	Variable factory overhead	$108,600
	Fixed factory overhead	24,000
Standard:	4,000 hrs. at $32	128,000

If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $136,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Variance	Amount	Favorable/Unfavorable
Controllable variance	$	Favorable
Volume variance	$	Unfavorable
Total factory overhead cost variance	$	Unfavorable

4. De Soto Inc. produces tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 770 tablets during July. However, due to LCD defects, the company actually used 800 LCD displays during July. Each display has a standard cost of $12.50. Eight hundred LCD displays were purchased for July production at a cost of $9,400.

Determine the price variance, quantity variance, and total direct materials cost variance for July.

Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Price variance	$	Favorable
Quantity variance	$	Unfavorable
Total direct materials cost variance	$	Favorable