Standards for producing one unit of product: Standard Quantity Direct Materials 2lbs Direct labor 2 hours Other data: Materials actually purchased Material price variance Materials actually used to produce 300 units of output Labor efficiency variance Standard Price $1.80 per lbs $18 per hour 4,500 lbs $450 unfavorable 780 lbs $90 unfavorable a. The material purchase price per pound. b. The material quantity variance. c. The actual number of hours worked. 6. QVX, Inc. manufactures an intermediate part it uses for assembling its finished product. QCX normally produces 2,500 units of the product. Manufacturing costs are: direct materials $1,20; direct labor $2.00; variable overhead $1.50; fixed overhead allocated $2.50 per unit. An outside supplier offered to sell a similar part at $5.00 per unit QVX will leave the facilities idle even if the part is purchased from outside. a. Should the company make or buy the part? b. The facility that is released when QVX does not produce the part can be rented for $1,000 for the period. Should the company make or buy the part?

5. Standards for producing one unit of product: Standard Price $1.80 per lbs $18 per hour Standard Quantity Direct Materials....... .2lbs Direct labor......... ..2 hours Other data: Materials actually purchased Material price variance Materials actually used to produce 300 units of output Labor efficiency variance 4,500 lbs $450 unfavorable 780 lbs $90 unfavorable a. The material purchase price per pound. b. The material quantity variance. C. The actual number of hours worked. 6. QVX, Inc. manufactures an intermediate part it uses for assembling its finished product. QCX normally produces 2,500 units of the product, Manufacturing costs are: direct materials $1,20; direct labor $2.00; variable overhead $1.50; fixed overhead allocated $2.50 per unit. An outside supplier offered to sell a similar part at $5.00 per unit QVX will leave the facilities idle even if the part is purchased from outside. a. Should the company make or buy the part? b. The facility that is released when QVX does not produce the part can be rented for $1,000 for the period. Should the company make or buy the part