Calculate the standard materials price per unit

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Question - PS produced 2,500 widgets during December 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 per hour. 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.

Required: show your calculations

a. Calculate the standard materials price per unit.

b. Calculate the standard labor rate.

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.

Reference no: EM132521176

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