PROBLEM 3 Al-Shabad Company produces a single product. The company has set the following standards for materials and labor: Direct materials Direct labor Standard quantity or hours per unit Standard price or rate ? pounds per unit $ ? per pound 3.0hours per unit $ 10per hour During the past month, the company purchased 7,000 pounds of direct materials at a cost of $17,500. All of this material was used in the production of 1,300 units of product. Direct labor cost totaled $36,750 for the month. The following variances have been computed: Materials quantity variance Total materials variance Labor efficiency variance Required: 1. Compute the standard price per pound of materials. $ 1,375 U $ 375 F $ 4,000 F 2. Compute the standard quantity allowed for materials for the month's production. 3. Compute the standard quantity of materials allowed per unit of product. 4. Compute the actual direct labor cost per hour for the month. 5. Compute the labor rate variance.