In all of the exercises involving variances, use "F" and "U" to designate favorable and unfavorable variances, respectively. E8-1 through E8-5 use the following data: The standard operating capacity of Tecate Manufacturing Co. is 1,000 units. A detailed study of the manufacturing data relating to the standard production cost of one product revealed the following: 1. Two pounds of materials are needed to produce one unit. 2. Standard unit cost of materials is $8 per pound. 3. It takes one hour of labor to produce one unit. 4. Standard labor rate is $10 per hour. 5. Standard overhead (all variable) for this volume is $4,000. Each case in E8-1 through E8-5 requires the following: a. Set up a standard cost summary showing the standard unit cost. b. Analyze the variances for materials and labor. Make journal entries to record the transfer to Work in Process c. of: 1. 2. Labor costs 3. Overhead costs Materials costs E8-1 E8-2 E8-3 (When making these entries, include the variances.) d. Prepare the journal entry to record the transfer of costs to the finished goods account. Standard unit cost; variance analysis; journal entries 1,000 units were started and finished. Case 1: All prices and quantities for the cost elements are stan- dard, except for materials cost, which is $8.50 per pound. Case 2: All prices and quantities for the cost elements are stan- dard, except that 1,900 lb of materials were used. Standard unit cost; variance analysis; journal entries 1,000 units were started and finished. Case 1: All prices and quantities are standard, except for the labor rate, which is $10.20 per hour. Case 2: All prices and quantities are standard, except for labor hours, which totaled 900. Computing standard unit cost; variance analysis; journal entries All of the deviations listed in E8-1 and E8-2 took place, and 1,000 units were started and finished. (Note that the quantities used will affect the rate variances for materials and labor.) E8-4 Standard unit cost; variance analysis; journal entries All of the deviations listed in E8-1 and E8-2 took place, and 900 units were started and finished. E8-5 Standard unit cost; variance analysis; journal entries All of the deviations listed in E8-1 and E8-2 took place, and 1,100 units were started and finished.