Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Standard Price or Standard Rate Cost $5 per foot $ 15 ? per hour ? Direct materials Direct labor Hours 3 feet ? hours During March, the company purchased direct materials at a cost of $57,090, all of which were used in the production of 3.400 units of product. In addition, 5,200 direct labor-hours were worked on the product during the month. The cost of this labor time was $54,600. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 900 U $ 3,600 U $1,000 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. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2 2a. For direct labor, compute the standard direct labor rate per hour. (Round your answer to the nearest whole dollar.) 2b. For direct labor, compute the standard hours allowed for the month's production. (Do not round your intermediate calculations. Round your final answer to the nearest whole number.) 2c. For direct labor, compute the standard hours allowed per unit of product. (Round your answer to 1 decimal place.) Show less A 2a. Standard direct labor rate per hour 2b. Standard hours allowed for the month's production 20. Standard hours allowed per unit of product
Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Standard Price or Standard Rate Cost $5 per foot $ 15 ? per hour ? Direct materials Direct labor Hours 3 feet ? hours During March, the company purchased direct materials at a cost of $57,090, all of which were used in the production of 3.400 units of product. In addition, 5,200 direct labor-hours were worked on the product during the month. The cost of this labor time was $54,600. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 900 U $ 3,600 U $1,000 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. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2 2a. For direct labor, compute the standard direct labor rate per hour. (Round your answer to the nearest whole dollar.) 2b. For direct labor, compute the standard hours allowed for the month's production. (Do not round your intermediate calculations. Round your final answer to the nearest whole number.) 2c. For direct labor, compute the standard hours allowed per unit of product. (Round your answer to 1 decimal place.) Show less A 2a. Standard direct labor rate per hour 2b. Standard hours allowed for the month's production 20. Standard hours allowed per unit of product
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Sharp Company manufactures a product for which the following standards have been set:
Standard
Quantity or Standard Price or Standard
Hours
Cost
3 feet
? hours
Direct materials
Direct labor
Materials quantity variance
Labor spending variance
Labor efficiency variance
During March, the company purchased direct materials at a cost of $57,090, all of which were used in the production of 3.400 units of
product. In addition, 5,200 direct labor-hours were worked on the product during the month. The cost of this labor time was $54,600.
The following varlances have been computed for the month:
Rate
$5 per foot
? per hour
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.
Req 1A
$ 900 U
$ 3,600 U
$1,000 U
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.
Req 18
Complete this question by entering your answers in the tabs below.
Req 2
$ 15
?
2a. For direct labor, compute the standard direct labor rate per hour. (Round your answer to the nearest whole dollar.)
2b. For direct labor, compute the standard hours allowed for the month's production. (Do not round your intermediate
calculations. Round your final answer to the nearest whole number.)
2c. For direct labor, compute the standard hours allowed per unit of product. (Round your answer to 1 decimal place.)
Show less A
2a. Standard direct labor rate per hour
2b. Standard hours allowed for the month's production
2c. Standard hours allowed per unit of product
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