Standard 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.

The standard operating capacity of Nogales Manufacturing Co. is 1,000 units. A detailed study of the manufacturing data relating to the production 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.

3. It takes one hour of labor to produce one unit.
4. Standard labor rate is \(\$ 10\) per hour.
5. Standard overhead for this volume is \(\$ 4,000\).

{Each case in E8-1 through E8-5 requires the following:}

a. Set up a standard cost summary showing the standard unit cost.

b. Analyze the variances for materials and labor.

c. 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.

d. Prepare the journal entry to record the transfer of costs to the finished goods account.