Analyses; Review of Chapter 7 LO₃ On May l,X-Men Company began the manufacture of a new mechanical de-

vice known as Nerd. The company installed a standard cost system in accounting for manufacturing costs. The standard costs for a unit of Nerd follow:

The amount shown above for the materials price variance is applicable to raw materials purchased during May.
Required:
Compute each of the following items for X-Men for the month of May. Show computations in good form.
1. Standard quantity of raw materials allowed (in pounds) for actual production.
2. Actual quantity of raw materials used (in pounds). (Hint: Be sure to consider the materials quantity variance.)
3. Standard direct labor hours allowed.
4. Actual direct labor hours worked.

6. Actual total overhead.

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Raw materials (5 lbs. @ $1 per lb.) Direct labor (I hr. @ $8 per hr.). Overhead (50% of direct labor costs) The following data came from X-Men's records for the month of May: Actual production. Units sold.. Sales Purchases (22,000 pounds) Materials price variance... Materials quantity variance Direct labor rate variance.. Direct labor efficiency variance.. Manufacturing overhead total variance $ 5 8 4 $17 Units 4,000 2,500 Debit Credit $50,000 $23,300 1,300 1,000 770 1.200 500