Problem 10-13 Materials and Labor Variances; Computations from Incomplete Data [LO1, LO2]

Topaz Company makes one product and has set the following standards for materials and labor:

	Direct Materials	Direct Labor
Standard quantity or hours per unit	? pounds		2.40	hours
Standard price or rate	? per pound	$	8.50	per hour
Standard cost per unit	?	$	20.40

During the past month, the company purchased 6,200 pounds of direct materials at a cost of $16,740. All of this material was used in the production of 1,100 units of product. Direct labor cost totaled $19,260 for the month. The following variances have been computed:

Materials quantity variance	$	1,180	U
Total materials spending variance	$	370	F
Labor efficiency variance	$	4,250	F

Required:

1.	For direct materials:

a.	Compute the standard price per pound for materials. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Standard price

$

b.	Compute the standard quantity allowed for materials for the month