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Calculation of variances for direct material and direct labor.
Nevada Learning Aids makes wooden lap desks. A small fire on October 1 partially destroyed the books and records relating to September's production. The charred remains of the standard cost card contains the following information:
Standard quantity of direct material
5.0 board feet
Standard price of direct labor
$12.50 per hour
From other fragments of records and several discussions with employees, you learn the following:
Required: a. How many units were produced during September? b. Calculate all variances for direct material and direct labor for September. c. What is the standard number of hours allowed for the production of each unit?
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