Solving for Unknowns Misterio Company uses a standard costing system. During the past quarter, the following variances were computed: Variable overhead efficiency variance $ 27,300 U Direct labor efficiency variance 109,200 U Direct labor rate variance 13,650 U Misterio applies variable overhead using a standard rate of $3 per direct labor hour allowed. Two direct labor hours are allowed per unit produced. (Only one type of product is manufactured.) During the quarter, Misterio used 25 percent more direct labor hours than should have been used.

1. What were the actual direct labor hours worked? What are the total hours allowed?

2. What is the standard hourly rate for direct labor? What is the actual hourly rate?

3. How many actual units were produced?