1. A manufactured product has the following information for June.

	Standard	Actual
Direct materials	(6 lbs. @ $9 per lb.)		53,300	lbs. @ $9.10 per lb.
Direct labor	(3 hrs. @ $16 per hr.)		26,000	hrs. @ $16.40 per hr.
Overhead	(3 hrs. @ $12 per hr.)	$	323,500
Units manufactured			8,800

Compute the standard cost per unit.

Direct materials
Direct labor
Overhead
Total

Compute the total cost variance for June. Indicate whether the cost variance is favorable or unfavorable.

Total cost variance

2. A manufactured product has the following information for June.

	Standard	Actual
Direct materials	(5 lbs. @ $8 per lb.)		37,500	lbs. @ $8.10 per lb.
Direct labor	(2 hrs. @ $16 per hr.)		14,400	hrs. @ $16.40 per hr.
Overhead	(2 hrs. @ $12 per hr.)	$	184,600
Units manufactured			7,400

Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable.

Actual Cost								Standard Cost

3. A manufactured product has the following information for June.

	Standard	Actual
Direct materials	(5 lbs. @ $9 per lb.)		36,400	lbs. @ $9.10 per lb.
Direct labor	(3 hrs. @ $16 per hr.)		21,200	hrs. @ $16.40 per hr.
Overhead	(3 hrs. @ $13 per hr.)	$	286,200
Units manufactured			7,200

Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.>

Actual Cost			0				0	Standard Cost
		0
			$0	0			$0
				$0
				0

4. Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.

Direct materials (15 lbs. @ $3 per lb.)			$45
Direct labor (3 hrs. @ $15 per hr.)			45

During June the company incurred the following actual costs to produce 8,900 units.

Direct materials (136,900 lbs. @ $2.80 per lb.)		$	383,320
Direct labor (30,200 hrs. @ $15.10 per hr.).			456,020

Compute the direct materials price and quantity variances.

Actual Cost								Standard Cost

Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.

Actual Cost								Standard Cost