Direct materials and manufacturing labor variances, solving unknowns. (CPA, adapted) On May 1,

2014, Lowell Company began the manufacture of a new paging machine known as Dandy. The company

installed a standard costing system to account for manufacturing costs. The standard costs for a unit of

Dandy follow:

Direct materials (2 lb. at $3 per lb.)	$6.00
Direct manufactuirng labor (1/2 hour at $16 per hour)	8.00
Manufacturing overhead (80% of direct manufacturing labor costs)	6.4
	$20.40

The following data were obtained from Lowells records for the month of May:

	Debit	Credit
Revenues		$150,000
Accounts payable control (for May's purchases of direct mateirals)		36,300
Direct materials price variance	$4,500
Direct materials efficiency variance	2,900
Direct manufacturing labor price variance	1,700
Direct manufacturing labor efficiency variance		2,000

Actual production in May was 4,700 units of Dandy, and actual sales in May were 3,000 units.

The amount shown for direct materials price variance applies to materials purchased during May.

There was no beginning inventory of materials on May 1, 2014.

Compute each of the following items for Lowell for the month of May. Show your computations.

1. Standard direct manufacturing labor-hours allowed for actual output produced

2. Actual direct manufacturing labor-hours worked

3. Actual direct manufacturing labor wage rate

4. Standard quantity of direct materials allowed (in pounds)

5. Actual quantity of direct materials used (in pounds)

6. Actual quantity of direct materials purchased (in pounds)

7. Actual direct materials price per pound