Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard Direct materials Direct labor or Hours 3 feet ? hours or Rate $5 per foot ? per hour Cost $ 15 ? During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37,600. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 4,050 U $ 2,180 U $ 770 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. Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard Direct materials Direct labor or Hours 3 feet ? hours or Rate $5 per foot ? per hour Cost $ 15 ? During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37,600. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 4,050 U $ 2,180 U $ 770 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.
Expert Answer:
Answer rating: 100% (QA)
For direct materials a To compute the actual cost per foot of materials for March we can divide the total cost of direct materials purchased by the to... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
What are the Future prospects and contributions of NIGNET to surveying and mapping industry in Nigeria?
-
what are the obstacles of global expansion for a service company
-
Stock Split JPix management is considering a stock split. JPix currently sells for $81 per share and a 3-for-1 stock split is contemplated. What will be the company's stock price following the stock...
-
The lease agreement and related facts indicate the following: a. Leased equipment had a retail cash selling price of $300,000. Its useful life was five years with no residual value. b. The lease term...
-
The organ donation policy in the United States is based on altruism. It is illegal to buy or sell human organs, so patients who need transplants will have to wait until they find an appropriate...
-
The linear density of a rod of length 4 m is given by ((x) = 9 + 2x measured in kilograms per meter, where x is measured in meters from one end of the rod. Find the total mass of the rod.
-
The following extract is from Conceptual Framework for Financial Accounting and Reporting: Elements of Financial Statements and Their Measurement, FASB 3, December 1976. The benefits of achieving...
-
The unadjusted trial balance of Helenas Hire Cars is shown below: HELENAS HIRE CARS Unadjusted Trial Balance as at 30 June 2016 Account Debit Credit Cash at bank Accounts receivable GST receivable...
-
Equipment costing $53,300 was purchase on April 1st of 2020. The equipment has a salvage value of $9,020 and an estimated life of 8 years and is depreciated using the straight-line method. On...
-
The costs of leasing are a.the down payment b.the lease payments. c.the buyout. d.a. and b. e.a., b., and c
-
You are to contribute to the group's goals by suggesting two ideas for any of the following. Promoting awareness of diversity and inclusion in the workplace. Work events or ideas for celebrating...
-
Share with the class the process you would go through in making your investigation of the property as the listing agent representing the property owner. How would you begin your investigation?...
-
How do they define and view leadership in the organization today? How would they describe their leadership style and how does that affect the organization? How did they get assigned the leadership...
-
How many grams of each of the following per kilogram of water inyour car radiator are needed to give equal protection againstfreezing down to -10.0 Degrees Celcius. A: Methy Alchohol ( CH3OH) Boiling...
-
Turner plc is expected to earn 5.14 a share in the next year and projected to pay 36% of earnings as dividend. The CFO of Turner plc has forecasted that the earnings would grow at 8.5% per year over...
-
i) Given a simple world with two assets, a bond fund and a stock fund, clearly detail the steps involved in arriving at the 1) efficient frontier, and 2) market (optimal) portfolio. ii) What is the...
-
Periwinkle Company is a multinational organization. Its Parts Division is located in Lavender Land, while its Assembly Division is located in North Orchid. During the current year Periwinkle Companys...
-
A company often test-markets a proposed product in a specific area or location. Suppose that you wish to test-market your new, revolutionary SuperWax car wax, which requires only one application for...
-
The idea for New Belgium Brewing Company began with a bicycling trip through Belgium, where some of the worlds finest ales have been brewed for centuries. As Jeff Lebesch, a U.S. electrical engineer,...
-
It is helpful to think of a total product offering as having a combination of three interdependent elements: the core product itself, its supplemental features, and its symbolic or experiential...
Study smarter with the SolutionInn App