1 .Stefani Company has gathered the following information about its product.

Direct materials: Each unit of product contains3.90pounds of materials. The average waste and spoilage per unit produced under normal conditions is0.20pounds. Materials cost $2per pound, but Stefani always takes the1.00% cash discount all of its suppliers offer. Freight costs average $0.45per pound.

Direct labor. Each unit requires2.60hours of labor. Setup, cleanup, and downtime average0.20hours per unit. The average hourly pay rate of Stefani's employees is $13.40. Payroll taxes and fringe benefits are an additional $3.10per hour.

Manufacturing overhead. Overhead is applied at a rate of $6.10per direct labor hour.

Compute Stefani's 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 Pharrell Company includes3.7units of direct materials at $6.2per unit. During June,27,100units of direct materials are purchased at a cost of $6.10per unit, and27,100units of direct materials are used to produce7,200units of Product B.

3

(a) Compute the total materials variance and the price and quantity variances. Total materials variance tA V Materials price variance $ Materials quantity variance $ (b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.30 and the quantity purchased and used is 27,000 units. Total materials variance tA Materials price variance $ Materials quantity variance $(a) Compute the total labor variance. Total labor variance $ V (b) Compute the labor price and quantity variances. Labor price variance $ Labor quantity variance $ (c) Compute the labor price and quantity variances, assuming the standard is 3.9 hours of direct labor at $ 13.50 per hour. Labor price variance $ Labor quantity variance $