Dorantes Manufacturing Company uses a standard cost system. In2010, 28,000 units

Question

Dorantes Manufacturing Company uses a standard cost system. In2010, 28,000 units were produced. Each unit took several pounds ofdirect materials and 11/2 standard hours ofdirect labor at a standard hourly rate of $12.00. Normal capacitywas 50,000 direct labor hours. During the year, 131,000 pounds ofraw materials were purchased at $0.92 per pound. All materialspurchased were used during the year.

1. If the materials price variance was $2,620 favorable, what wasthe standard materials price per pound? (Round answer to 2 decimal places, i.e.0.50.)
   $ perpound
2. If the materials quantity variance was $4,700 unfavorable, whatwas the standard materials quantity per unit? (Round answer to 1 decimal place, i.e.2.5.)
   pounds perunit
3. What were the standard hours allowed for the unitsproduced?
   
4. If the labor quantity variance was $7,200 unfavorable, whatwere the actual direct labor hours worked?
   actual hoursworked
5. If the labor price variance was $10,650 favorable, what was theactual rate per hour? (Roundanswer to 2 decimal places, i.e. 10.25.)
   $ actual rateper hour
6. If total budgeted manufacturing overhead was $350,000 at normalcapacity, what was the predetermined overhead rate? (Round answer to 2 decimal places, i.e.10.25.)
   $predetermined overhead rate per direct labor hour
7. What was the standard cost per unit of product? (Round answer to 2 decimal places, i.e.10.25.)
   $ standardcost per unit
8. How much overhead was applied to production during theyear?
   $ overheadapplied
9. Using one or more answers above, what were the total costsassigned to work in process?
   $

Explanation / Answer

What were the standard hours allowed for the units produced?
i.e. 28,000 x 1.5 = 42,000

If the labor quantity variance was $7,200 unfavorable, what werethe actual direct labor hours worked?
actual hours worked
(SH x AQ - AH x AQ) xSR   =  - $7,200

What was the standard cost per unit of product? (Round answer to 2 decimal places, i.e.10.25.)
$ standard cost per unit

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