Hill Fine Instruments manufactures trumpets, trombones, tubas, and other brass instruments. The following standards were developed for a line of trumpets:

During April, Hill scheduled 550 trumpets for production. However, the company produced only 525.

Hill purchased and used 3,100 pounds of direct materials at a unit price of $9.00 per pound. It used 5,500 hours of direct labor at an actual rate of $26.00 per hour.

1. Compute the standard cost per trumpet for direct materials and direct labor.

2. Compute the price variances and quantity variances for direct materials and direct labor.

3. Based on these sketchy data, what clues for investigation are provided by the variances?

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Standard Inputs Expected for Each Unit of Output Achieved 5 pounds Standard Price per Unit of Input $10 per pound $25 per hour Direct materials Direct labor 10 hours