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Penny Company manufactures only one product and uses a standard cost system. The following information is from Penny's records for May: Direct labor rate Variance:

Penny Company manufactures only one product and uses a standard cost system. The following information is from Penny's records for May:

Direct labor rate Variance: $15,000 favorable

Direct labor time variance: $25,000 unfavorable

Standard hours per unit produce: 2.5 hours

Standard rate per hour $25

During May, the company used 12.5% more hours than the standard allowed.

  1. What were the total standard hours allowed for the units manufactured during the month?
  2. What were the actual hours worked?
  3. How many actual units were produced during May?

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