Problem: On May 1, 2003 Goodman Company began the manufacture of a new mechanical device known as "Dandy'. The company installed cost system in accounting for manufacturing costs. The standard cost for a unit of "Dandy' are as follows:

Raw Materials 6 lbs @ $1 per lb. $6.00

DL 1 hour @ $4/ hr 4.00

OH 75% of DL costs 3.00

During May, 4,000 units of 'Dandy' were manufactured and 2,500 units were sold. The following data were obtained from Goodman's records for the month of May:

DEBIT CREDIT

Sales $50,000

Purchases (26,000 pounds) $27,300

Material price variance (U) 1,300

Material quantity variance (U) 1,000

DL rate Variance (U) 760

DL efficiency variance (F) 800

The amount shown above for material price variance is applicable to raw material purchased during May.

Compute each of the following items for Goodman for the month of May. Show computations in good form.

(a)Standard quantity of raw materials allowed (in pounds).

(b)Actual quantity of raw materials used (in pounds).

(c)Standard hours allowed.

(d)Actual hours worked.

(e)Actual direct labor rate.