Use the following to answer questions 5-12: CHAVEZ CORPORATION (40 points) 9. Assume that Cost of Goods Manufactured for the period was $155.000. Chavez had $115,000 of product in finished-goods inventory at the start of the period, and $110,000 in finished-goods inventory at the end of the period. Cost of goods sold is: CHAVEZ CORPORATION produces a product for which it sells for $70. The following standard cost record is available: Direct materials Direct labor 3 lbs. @5/1b. 4 hrs. $15/hr. Overhead Information: Budgeted $500,000 Actual 480,000 Production information: Budgeted direct-labor hours Actual direct-labor hours 100.000 hrs. 120,000 hrs. 5. Compute the predetermined overhead rate per hr 10. NOW ASSUME that 10,000 units were sold. Compute the amount of gross margin S 11. Actual production was 40,000 hours, requiring 150,000 direct labor hours. Compute the direct labor efficiency variance 6. How much overhead is applied to each unit: indicate amount and direction) per unit 7. Compute the standard unit cost 12. Assume that Chavez's invested assets were $2,100,000. Budgeted sales price per unit equaled the actual sales price per unit. Compute the investment turnover times 8. Assume that Chavez has $20,000 in beginning work in process and $16.000 in ending work in process for the period. Total production costs for the period were $65,000. Cost of goods manufactured was: Page 3 Page 4