Problem 11-5 The Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs. The standards per 0.40-gallon can of chemical call for 1.20 gallons of material and 1.50 hours of labor. (1.20 gallons of material are needed to produce a 0.40-gallon can of product due to evaporation.) The standard cost per gallon of material is $6.00. The standard cost per hour for labor is $8.00. Overhead is applied at the rate of $8.03 per can. Expected production is 18,500 cans with fixed overhead per year of $37,555 and variable overhead of $6.00 per unit (a 0.40-gallon can). During 2018, 24,000 cans were produced; 34,400 gallons of material were purchased at a cost of $232,200; 27,300 gallons of material were used in production. The cost of direct labor incurred in 2018 was $269,265 based on an average actual wage rate of $7.57 per hour. Actual overhead for 2018 was $241,500.

Determine the standard cost per unit. (Round answer to 2 decimal places, e.g. 15.25.)

Standard cost

$

per unit

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Calculate material, labor, and overhead variances. (Round intermediate calculations to 2 decimal places, e.g. 14.37 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.)

Material Price Variance		$		UnfavorableFavorableNeither Unfavorable nor Favorable
Material Quantity Variance		$		Neither Unfavorable nor FavorableFavorableUnfavorable
Labor Rate Variance		$		FavorableUnfavorableNeither Unfavorable nor Favorable
Labor Efficiency Variance		$		FavorableUnfavorableNeither Unfavorable nor Favorable
Controllable Overhead Variance		$		FavorableUnfavorableNeither Unfavorable nor Favorable
Overhead Volume Variance		$		FavorableNeither Unfavorable nor FavorableUnfavorable