EXERCISES E8-1 through E8-5 use the following data: The standard operating capacity of Nogales Manufacturing Co. is units. A detailed study of the manufacturing data relating to the proo tion of one product revealed the following: 1. Two pounds of materials are needed to produce one unit. 2. Standard unit cost of materials is $8 per pound. 1 l8-Standard Cost Accounting-Materials, Labor, and Factory ne hour of labor to produce one unit. overhead for this volume is $4,000. in E8-1 through E8-5 requires the following: the variances for materials and labor. 3. 4. Standara labor rate Standard labor rate is $10 per hour. 5. Standard overis $10 perbue Set up a standard cos Sel ary showing the standard unit cost. a. Make journal entries to record the transfer to Work in Process of 1. materials costs; 2. labor costs; 3. overhead costs When making these entries, include the variances. Prepare the journal entry to record the transfer of costs to the finished goods account. LO2 C. LO3 LO4 Standard unit cost; variance analysis; journal entries 1,000 units were started and finished. Case 1: All prices and quantities for the cost elements are standard, except for materials cost, which is $8.50 per pound Case 2: All prices and quantities for the cost elements are standard, cept that 1,900 pounds of materials were used. ex ndard unit cost; variance analysis; journal entries All of the deviations listed in E8-1 and E8-2 took place, and 950 units were started and finished