On May 1, Sparta Inc. began the manufacture of a new mechanical device known as Alex. The
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Raw materials (5 lb @ $1 per lb). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5
Direct labor (1 hr @ $8 per hr) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Overhead (50% of direct labor costs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
$17
The following data came from Sparta's records for May:
Units
Actual production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Units sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500
The amount shown above for the materials price variance is applicable to raw materials purchased during May.
Required:
Compute each of the following items for Sparta for May. Show computations in good form.
1. Standard quantity of raw materials allowed (in pounds) for actual production.
2. Actual quantity of raw materials used (in pounds).
3. Standard direct labor hours allowed.
4. Actual direct labor hours worked.
5. Actual direct labor rate.
6. Actual totaloverhead.
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