1. Lily Company has gathered the following information about its product. Direct materials: Each unit of product contains 5.1 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.9 pounds. Materials cost $5.50 per pound, but Lily always takes the 3.10% cash discount all of its suppliers offer. Freight costs average $0.40 per pound. Direct labor. Each unit requires 1.75 hours of labor. Setup, cleanup, and downtime average 0.45 hours per unit. The average hourly pay rate of Lilys employees is $9.75. Payroll taxes and fringe benefits are an additional $2.55 per hour. Manufacturing overhead. Overhead is applied at a rate of $5.75 per direct labor hour. Compute Lilys total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.)

Total standard cost per unit

2. The standard cost of Product B manufactured by Sheffield Company includes 3 units of direct materials at $5.00 per unit. During June, 29,200 units of direct materials are purchased at a cost of $4.70 per unit, and 29,200 units of direct materials are used to produce 9,520 units of Product B. (a) Compute the total materials variance and the price and quantity variances.

Total materials variance		$enter total materials variance in dollars		select an option UnfavorableNeither favorable nor unfavorableFavorable
Materials price variance		$enter Materials price variance in dollars		select an option Neither favorable nor unfavorableFavorableUnfavorable
Materials quantity variance		$enter Materials quantity variance in dollars		select an option Neither favorable nor unfavorableFavorableUnfavorable

(b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $5.15 and the quantity purchased and used is 28,400 units.

Total materials variance		$enter total materials variance in dollars		select an option UnfavorableNeither favorable nor unfavorableFavorable
Materials price variance		$enter Materials price variance in dollars		select an option Neither favorable nor unfavorableUnfavorableFavorable
Materials quantity variance		$enter Materials quantity variance in dollars		select an option FavorableUnfavorableNeither favorable nor unfavorable

3. The following direct materials and direct labor data pertain to the operations of Pina Colada Company for the month of August.

Costs
Actual labor rate		$16.90	per hour
Actual materials price		$128.00	per ton
Standard labor rate		$13.90	per hour
Standard materials price		$130.00	per ton

Quantities
Actual hours incurred and used		4,360 hours
Actual quantity of materials purchased and used		1,236 tons
Standard hours used		4,610 hours
Standard quantity of materials used		1,200 tons

(a) Compute the total, price, and quantity variances for materials and labor.

Total materials variance		$enter Total materials variance in dollars		select an option UnfavorableFavorableNeither favorable nor unfavorable
Materials price variance		$enter Materials price variance in dollars		select an option FavorableUnfavorableNeither favorable nor unfavorable
Materials quantity variance		$enter Materials quantity variance in dollars		select an option UnfavorableNeither favorable nor unfavorableFavorable
Total labor variance		$enter Total labor variance in dollars		select an option UnfavorableFavorableNeither favorable nor unfavorable
Labor price variance		$enter Labor price variance in dollars		select an option Neither favorable nor unfavorableUnfavorableFavorable
Labor quantity variance		$enter Labor quantity variance in dollars		select an option Neither favorable nor unfavorableFavorableUnfavorable