Working Backwards Reliance, Inc., utilizes a standard-cost system for budget and control purposes. Flexible budgets are determined, and all indirect costs are assigned on the basis of standard direct-labor hours.

The following standard cost per unit was determined on the basis of a projected monthly denominator activity for 19_6.

Direct materials: 3 lbs. @ $6.00 $18.00 Direct labor: 2 hours @ $6.00 12.00 Variable indirect costs: 2 hours @ $1.50 3.00 Fixed indirect costs: 2 hours @ $1.00 2.00 Total $35.00 You have just received this condensed performance report for February 19_7.
VARIANCE ANALYSIS Standard Price Costs wv or Applied Rate Efficiency Denominator Direct materials used $162,000 $14,000 F $6,000 U —
Direct-labor costs 108,000 18,200 U 1,200 U —
Variable indirect costs 27,000 5,250 U 300 U —
Fixed indirect costs 18,000 1,500 U* — 4,000 U * 4,500 U is entire flexible-budget variance for fixed indirect costs.
1. Number of units produced.
29. Actual number of direct labor-hours of input.
3. Actual wage rate.
4. Actual fixed indirect costs.
5. Denominator activity (monthly) expressed in units.
6. Actual price paid per pound of direct materials.
7, Actual pounds of direct material used.