Costs and Production Data		Actual		Standard
Raw materials unit cost		$2.40		$2.25
Raw materials units		11,100		10,400
Direct labor payroll		$177,000		$171,360
Direct labor hours		15,000		15,300
Manufacturing overhead incurred		$204,550
Manufacturing overhead applied				$206,550
Machine hours expected to be used at normal capacity				41,500
Budgeted fixed overhead for June				$62,250
Variable overhead rate per machine hour				$3.00
Fixed overhead rate per machine hour				$1.50

Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor hour. The jobs were sold for $498,000. Selling and administrative expenses were $37,900. Assume that the amount of raw materials purchased equaled the amount used.

(a)

	Your answer is correct.

If the materials price variance was $2,606 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.)

Standard materials price per pound

$ .95

(b)

	Your answer is correct.

If the materials quantity variance was $17,765 unfavorable, what was the standard materials quantity per unit?

Standard materials quantity per unit

4 pounds

(c)

What were the standard hours allowed for the units produced?

Standard hours allowed

hours

Material Price Variance = (Standard Material Price Actual Material Price) x Actual Quantity

$ 2.606 = (Standard Material Price 0.93) x 130,300

Standard Material Price = 2,606/ 130,300 + 0.93

= 0.02 + 0.93

= $ 0.95

Therefore, Standard Material Price per pound = $0.95

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If material quantity variance is $17,765

Material Quantity Variance = (Standard Material Quantity - Actual Material Quantity) x Standard Material Price

$17,765 = (Standard Material Quantity - 130,300) x 0.95

Standard Material Quantity = (-17,765/0.95)+130,300 = 130,300 - 18700

Standard Material Quantity = $111,600

SMQ per Unit = SMQ/ Actual output

= 111,600/27900

SMQ per Unit = 4

I need to know (c) Standard hours allowed.