Cost standards for one unit of product no. C77:
Direct material	3 pounds at $2.70 per pound	$	8.10
Direct labor	7 hours at $7.30 per hour		51.10
Actual results:
Units produced	5,700 units
Direct material purchased	26,100 pounds at $2.90	$	75,690
Direct material used	16,800 pounds at $2.90		48,720
Direct labor	40,600 hours at $7.10		288,260

Assume that the company computes variances at the earliest point in time. The standard hours allowed for the work performed are:

Multiple Choice

• 40,300.

• 40,050.

• 39,900.

• 39,800.

• None of the answers is correct.