QUESTION 1:

Nona Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product.

Direct materials (7 pounds at $1.70 per pound)		$11.90
Direct labor (2 hours at $11.00 per hour)		$22.00

During the month of April, the company manufactures 270 units and incurs the following actual costs.

Direct materials purchased and used (1,800 pounds)		$3,420
Direct labor (580 hours)		$6,276

Compute the total, price, and quantity variances for materials and labor.

QUESTION 2:

You have been given the following information about the production of Horatio Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations.

		Standard Cost Card
Direct materials (9 pounds at $5 per pound)		$45.00
Direct labor (0.7 hours at $6)		4.20
Variable overhead (0.7 hours at $3 per hour)		2.10
Fixed overhead (0.7 hours at $8 per hour)		5.60
		$56.90

The following is a variance report for the most recent period of operations.

				Variances
Costs		Total Standard Cost		Price			Quantity
Direct materials		$405,700		$7,688	F		$9,490	U
Direct labor		37,867		4,260	U		6,060	U

1.) How many units were produced during the period?

2.) How many pounds of raw material were purchased and used during the period?

3.) What was the actual cost per pound of raw materials?

4.) How many actual direct labor hours were worked during the period?

5.) What was the actual rate paid per direct labor hour?