I need help with problems 1 a-b, and 2-a-c. Part of 1 b is cut off, to clarify it says that I need to solve for the "price variance" and the "spending variance." Thanks for the help in advance! **Cost Variance Analysis for Sharp Company**---Sharp Company manufactures a product for which the following standards have been set:| **Standard Quantity or Hours** | **Standard Price or Rate** | **Standard Cost** ||--------------------------------|----------------------------|-------------------|| Direct materials | 3 feet | $5 per foot | $15 || Direct labor | ? hours | ? per hour | ? |---**March Performance Data:**During March, the company purchased direct materials at a cost of $45,210, all of which were used in the production of 2,500 units of product. Additionally, 4,100 hours of direct labor time were worked on the product during the month. The cost of this labor time was $30,750. The following variances have been computed for the month:| **Variance** | **Amount** ||--------------------------------|--------------|| Materials quantity variance | $3,600 U || Labor spending variance | $2,750 U || Labor efficiency variance | $700 U |**Required Analysis:**1. **For direct materials:** a. Compute the actual cost per foot for materials for March. (Round your answer to 2 decimal places.) **Computation:** - Actual cost per foot = $2.75 per foot---**Diagram Explanation:** The analysis includes cost variances represented in monetary terms. "U" indicates an "Unfavorable" variance, meaning the actual costs were higher than the standard costs.1. **Materials Quantity Variance:** Indicates that the company used more materials than expected.2. **Labor Spending Variance:** Reflects higher labor costs than anticipated.3. **Labor Efficiency Variance:** Shows that more labor hours were needed than planned.---### Additional Considerationsb. Compute the price variance and the spending variance (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)). ### Direct Labor Standard Calculations#### 2. For direct labor:*(Do not round intermediate calculations.)***a. Compute the standard direct labor rate per hour.** *(Round your final answer to 2 decimal places.)*- **Standard direct labor rate per hour**: [ **Input box** ]**b. Compute the standard hours allowed for the month’s production.**- **Standard hours**: [ **Input box** ] hours**c. Compute the standard hours allowed per unit of product.** *(Round your answer to 1 decimal place.)*- **Standard hours**: [ **Input box** ] hours per unit

Name: I need help with problems 1 a-b, and 2-a-c. Part of 1 b is cut off, to
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Description: I need help with problems 1 a-b, and 2-a-c. Part of 1 b is cut off, to clarify it says that I need to solve for the "price variance" and the "spending variance." Thanks for the help in advance! **Cost Variance Analysis for Sharp Company**---Sharp Com

1.a Compute actual cost per foot: Actual cost per foot = Actual cost / Actual quantity Actual cost…

Business

Accounting

During March, the company purchased direct materials at a cost of $45,210, all of which were used in the production of 2,500 units of product. In addition, 4,100 hours of direct labor time were worked on the product during the month. The cost of this labor time was $30,750. The following variances have been computed for the month:

During March, the company purchased direct materials at a cost of $45,210, all of which were used in the production of 2,500 units of product. In addition, 4,100 hours of direct labor time were worked on the product during the month. The cost of this labor time was $30,750. The following variances have been computed for the month:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B30 enter the formula "= B20". Notes: In the text, variances are always displayed as positive numbers. To accomplish this, you can use the ABS() function in Excel. For example, the formula in cell C31 would be "=ABS(E31-B31)". Cells D31 through D39 and G31 through G39 already contain formulas to compute and display whether variances are Favorable or Unfavorable. Do not enter data or formulas into those cells-if you do, you will overwrite these formulas. After entering formulas in all of the cells that contained question marks, verify that the amounts match the numbers in the example in the text. Required: 1. Check your worksheet by changing the revenue in cell D4 to $16.00; the cost of ingredients in cell D5 to $6.50; and the wages and salaries in cell B6 to $10,000. The activity variance for net operating income should now be $850 U and the spending variance for total…
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