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Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price or Standard Cost or Hours $ 15 3 feet hours ? ? Direct materials. Direct labor Rate $5 per foot ? per hour During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37,600. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 4,050 U $ 2,180 U $ 770 U Required: 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.

Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price or Standard Cost or Hours $ 15 3 feet hours ? ? Direct materials. Direct labor Rate $5 per foot ? per hour During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37,600. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 4,050 U $ 2,180 U $ 770 U Required: 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.

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Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price or Standard Cost or Hours $ 15 ? Direct materials Direct labor 3 feet hours ? Materials quantity variance Labor spending variance Labor efficiency variance Rate $5 per foot ? per hour During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37,600. The following variances have been computed for the month: $ 4,050 U $ 2,180 U $ 770 U Required: 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.
Transcribed Image Text:Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price or Standard Cost or Hours $ 15 ? Direct materials Direct labor 3 feet hours ? Materials quantity variance Labor spending variance Labor efficiency variance Rate $5 per foot ? per hour During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37,600. The following variances have been computed for the month: $ 4,050 U $ 2,180 U $ 770 U Required: 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.
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