On May 1, 2017, Lester 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 and other information follow: Actual production in May was 4,100 units of Dandy, and actual sales in May were 2,700 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, 2017 , gx Requirements Data Table - X The standard costs for a unit of Dandy follow: $ Direct materials (2 lb. at $7 per lb.) Direct manufacturing labor (1/2 hour at $18 per hour) Manufacturing overhead (75% of direct manufacturing labor costs) 14.00 9.00 6.75 Compute each of the following items for Lester for the month of May. Show your computations by first selecting the formula to compute the amount then entering the amounts in the formula and solving for your answer 1. Standard direct manufacturing labor-hours allowed for actual output produced 2. Actual direct manufacturing labor-hours workod 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 s 29.75 The following data were obtained from Lester's records for the month of May: Debit Credit Revenues $ 121,500 68,950 Print Done $ $ Accounts payable control for May's purchases of direct materials) Direct materials price variance Direct materials efficiency variance Direct manufacturing labor price variance Direct manufacturing labor efficiency variance 3,750 2,900 2,200 2,400 1. Compute the standard direct manufacturing labor-hours allowed for actual output produced. (Enter rates to two decimal places. Roun Standard direct manuf. labor-hours allowed for actual output produced X hours = hours 2. Compute the actual direct manufacturing labor-hours worked. (Round your answer to the nearest whole dollar.) Actual direct mfg. labor-hours worked hours 3. Compute the actual direct manufacturing labor wage rate. (Round your answer to the nearest whole dollar.) Actual direct mfg. labor wage rate per hour 4. Compute the standard quantity of direct materials allowed (in pounds). Standard quantity of direct materials allowed (in pounds) pounds 5. Compute the actual quantity of direct materials used (in pounds). (Round your answer to the nearest whole number.) Actual quantity of + )/ = DM used in lbs) ( + 1) / lbs. 6. Compute the actual quantity of direct materials purchased (in pounds). (Round your answer to the nearest whole number.) Actual quantity of 7 DM purchased ) = lbs. 7. Compute the actual direct materials price per pound. (Round your answer to the nearest cent.) Actual direct materials price per lb = per lb
