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Pontefract Company produced 2,500 widgets during November using 4,000 units of materials at a cost of $5.00 each. It also used 5,000 direct labor hours at a rate of $7.00. Its direct materials standard is 2 units per widget. Its direct labor standard is 2.5 hours per widget. Its materials price variance was a favorable $8,000 and its labor rate variance was an unfavorable $1,000.
A. Calculate the standard materials price per unit.
B. Calculate the standard labor rate. Round your answer to two decimal places.
C. Determine the materials usage variance and whether it is favorable or unfavorable.
D. Determine the labor efficiency variance and whether it is favorable or unfavorable.
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