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 $52,965, all of which wereused in the production of 2,920 units of product. In addition,4,500 hours of direct labor time were worked on the product duringthe month. The cost of this labor time was $31,500. The followingvariances have been computed for the month:
Materials quantity variance $ 4,350 U Labor spendingvariance $ 3,030 U Labor efficiencyvariance $ 780 U
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. Round your final answer to 2decimal places.)
b. Compute the standard hours allowed for the monthâsproduction.
c. Compute the standard hours allowed per unit of product.(Round your answer to 1 decimal place.)
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 $52,965, all of which wereused in the production of 2,920 units of product. In addition,4,500 hours of direct labor time were worked on the product duringthe month. The cost of this labor time was $31,500. The followingvariances have been computed for the month: |
| Materials quantity variance | $ | 4,350 | U |
| Labor spendingvariance | $ | 3,030 | U |
| Labor efficiencyvariance | $ | 780 | U |
| 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. Round your final answer to 2decimal places.) |
| b. | Compute the standard hours allowed for the monthâsproduction. |
| c. | Compute the standard hours allowed per unit of product.(Round your answer to 1 decimal place.) |
Related questions
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))
|
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 | ||||||||||||
| |||||||||||||||
Problem 10-11 Direct Materials and Direct Labor Variances; Computations from Incomplete Data [LO10-1, LO10-2]
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 | ? | |||
During March, the company purchased direct materials at a cost of $45,240, all of which were used in the production of 2,190 units of product. In addition, 4,500 direct labor-hours were worked on the product during the month. The cost of this labor time was $31,500. The following variances have been computed for the month:
| Materials quantity variance | $ | 1,950 | U |
| Labor spending variance | $ | 3,030 | U |
| Labor efficiency variance | $ | 780 | 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 monthâs production.
c. Compute the standard hours allowed per unit of product.
