44) The following data for the Panoid Garden Supplies Company pertains to the production of 2,000 garden spades during March. The spade consists of a wooden handle and a metal forged tool that comes in contact with the ground.Direct Materials (all materials purchased were used): Standard cost: $1.00 per handle and $3.00 per metal tool.Total actual cost: $9,000.Materials flexible-budget efficiency variance was $500 unfavorable. Direct Manufacturing Labor: Standard cost is 5 garden spades per hour at $20.00 per hour.Actual cost per hour was $21.00.Labor efficiency variance was $500 favorable. Required: a.What is the standard direct material amount per garden spade?b.What is the standard cost allowed for all units produced?c.What is the total direct materials flexible-budget variance?d.What is the direct material flexible-budget price variance?e.What is the total actual cost of direct manufacturing labor?f.What is the labor price variance for direct manufacturing labor? Answer: a.Standard cost per garden spade= $1.00 (handle) + $3.00 (tool)= $4.00 per garden spadeb.Standard cost allowed for all units= 2,000 × $4.00= $8,000 per garden spadec.Total materials variance = $8,000 − $9,000= $1,000 unfavorable= $1,000 unfavorabled.Materials price variance= Total variance - efficiency variance= ($9,000 − $8,000) − $500 unfavorable= $500 unfavorable e.Total standard labor cost of actual hours= ((2,000/5) × $20) − $500 favorable= $7,500Actual hours= $7,500/20 = 375 hoursTotal actual costs= 375 × $21 = $7,875 f.Labor price variance= $7,500 − $7,875= $375 unfavorable Diff: 3Objective: 5AACSB: Application of knowledge45) The following data for the telephone company pertain to the production of 450 rolls of telephone wire during June. Selected items are omitted because the costing records were lost in a windstorm. Direct Materials (All materials purchased were used.) Standard cost per roll: a pounds at $4.00 per pound.Total actual cost: b pounds costing $9,600. Standard cost allowed for units produced was $9,000.