Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or...

60.1K

Verified Solution

Question

Accounting

Sharp Company manufactures a product for which the followingstandards 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 costof $52,965, all of which were used in the production of 2,920 unitsof product. In addition, 4,500 direct labor-hours were worked onthe product during the month. The cost of this labor time was$31,500. The following variances have been computed for themonth:
Materials quantity variance $ 4,350 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 month’sproduction.
c. Compute the standard hours allowed per unit of product.

Answer & Explanation Solved by verified expert

3.5 Ratings (594 Votes)

1 Material Quantity Variance Actual usage in units Standard usage in units x Standard cost per unit 4350 Actual Usage 2920 units x 3 feet x 5 Actual Usage 4350 5 8760 7890 feet Direct Material Cost 52965 a Actual cost per foot of Material 52965 7890 67129 b Material See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

	Standard Quantity or Hours		Standard Price or Rate			Standard Cost
Direct materials	3	feet	$	5	per foot	$	15
Direct labor	?	hours		?	per hour		?


Materials quantity variance	$	4,350	U
Labor spending variance	$	3,030	U
Labor efficiency variance	$	780	U