Labor Variances Verde Company produces wheels for bicycles. During the year, 660,000 wheels were produced. The actual labor used was 360,000 hours at $9.50 per hour. Verde has the following labor standard: 0.5 hour at $10. Standard Quantities of Labor and Materials Stillwater Designs rebuilds defective units of its S12L7 Kicker speaker model. During the year, Stillwater rebuilt 7,500 units. Materials and labor standards for performing the repairs are as follows: Direct materials (1 recon kit @ $150) $150.00 Direct materials (1 cabinet @ $50) 50.00 Direct labor (5 hrs. @ $12) 60.00 1. Compute the standard hours allowed for a volume of 7,500 rebuilt units. hours 2. Compute the standard number of kits and cabinets allowed for a volume of 7,500 rebuilt units. Standard Number of Kits: kits Standard Number of Cabinets: cabinets 3. Suppose that during the first month of the year, 3,750 standard hours were allowed for the units rebuilt. How many units were rebuilt during the first month? Units Total Materials Variance Lata Inc., produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,250,000 ounces of aluminum. The actual cost of aluminum was $0.09 per ounce and the standard price was $0.08 per ounce. There are no beginning or ending inventories of aluminum. Required: Calculate the total variance for aluminum for the month of April