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

During the past month, the company purchased 6,000 pounds of direct materials at a cost of $16,500. All of this material was used in the production of 1,400 units of product. Direct labor cost totaled $28,500 for the month. The following variances have been computed:
Materials quantity variance . . . . . . . . . . . . . . . $1,200U
Total materials spending variance . . . . . . . . . . $300 F
Labor efficiency variance . . . . . . . . . . . . . . . . . $4,500 F

Required:
1. For direct materials:
a. Compute the standard price per pound for materials.
b. Compute the standard quantity allowed for materials for the month’s production.
c. Compute the standard quantity of materials allowed per unit of product.
2. For direct labor:
a. Compute the actual direct labor cost per hour for the month.
b. Compute the labor rate variance.

Transcribed Image Text:

Direct Materials Direct Labor 2.5 hours $9.00 per hour Standard quantity or hours per unit Standard price or rate Standard cost per unit ? pounds ? per pound ..-. $22.50