Sharp Company manufactures a product for which the following standards have been set:Standard Quantity Standard Price StandardDirect materialsDirect laboror Hours3 feet? hoursor Rate$5 per foot? per hourCost$ 15?During March, the company purchased direct materials at a cost of $57,510, all of which were used in the production of 3,125 units ofproduct. In addition, 5,100 direct labor-hours were worked on the product during the month. The cost of this labor time was $51,000.The following variances have been computed for the month:Materials quantity varianceLabor spending varianceLabor efficiency variance$ 1,050 U$ 3,500 U$950 URequired:1. For direct materials:a. Compute the actual cost per foot of materials for March.b. Compute the price variance and the spending variance.2. For direct labor:a. Compute the standard direct labor rate per hour.b. Compute the standard hours allowed for the month's production.c. Compute the standard hours allowed per unit of product.

Part 1:Answer:a. Actual cost per foot of materials for March:Actual cost of materials =…

Answered: Sharp Company manufactures a product…

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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