You have been given the following information about the production of Gamma Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations.

Standard Cost Card

Direct materials (7 pounds at $3 per pound) $21.00

Direct labor (0.9 hours at $5) 4.50

Variable overhead (0.9 hours at $4 per hour) 3.60

Fixed overhead (0.9 hours at $8 per hour) 7.20


The following is a production report for the most recent period of operations.


Costs Total Standard Cost Price Quantity

Direct materials $464,100 $99,225 F $8,400 U

Direct labor 99,450 8,316 U -450 U


(Round cost per pound and rate paid per hour to 2 decimal places, e.g. 10.50.)

(a) How many units were produced during the period?

(b) How many pounds of raw material were purchased and used during the period? pounds

(c) What was the actual cost per pound of raw materials? $ per pound

(d) How many actual direct labor hours were worked during the period? hours

(e) What was the actual rate paid per direct labor hour? $ per hour

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