Sharp Company manufactures a product for which the followingstandards have been set:
Standard Quantity
or Hours Standard Price
or Rate Standard
Cost Directmaterials 3 feet $ 5 per foot $ 15 Direct labor ? hours ? per hour ?
During March, the companypurchased direct materials at a cost of $57,250, all of which wereused in the production of 3,280 units of product. In addition,4,900 hours of direct labor time were worked on the product duringthe month. The cost of this labor time was $38,350. The followingvariances have been computed for the month:
Materials quantity variance $ 3,300 U Labor spendingvariance $ 1,010 F Labor efficiencyvariance $ 160 F
Required:
1. For direct materials:
a. Compute the actual cost per foot for materials for March.(Round your answer to 2 decimal places.)
b.
Compute the price variance and the spending variance.(Do not round intermediate calculations. Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zerovariance))
2.
For direct labor:
a. Compute the standard direct labor rate per hour. (Do notround intermediate calculations.)
b.Compute the standard hours allowed for the monthâsproduction.
c. Compute the standard hours allowed per unit of product.
Sharp Company manufactures a product for which the followingstandards have been set: |
Standard Quantity or Hours | Standard Price or Rate | Standard Cost | ||||||
Directmaterials | 3 | feet | $ | 5 | per foot | $ | 15 | |
Direct labor | ? | hours | ? | per hour | ? | |||
During March, the companypurchased direct materials at a cost of $57,250, all of which wereused in the production of 3,280 units of product. In addition,4,900 hours of direct labor time were worked on the product duringthe month. The cost of this labor time was $38,350. The followingvariances have been computed for the month: |
Materials quantity variance | $ | 3,300 | U |
Labor spendingvariance | $ | 1,010 | F |
Labor efficiencyvariance | $ | 160 | F |
Required: |
1. | For direct materials: |
a. | Compute the actual cost per foot for materials for March.(Round your answer to 2 decimal places.) |
b.
Compute the price variance and the spending variance.(Do not round intermediate calculations. Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zerovariance))
|