PROBLEM 1011 Direct Materials and Direct Labor Variances; Computations from Incomplete Data L010-1, L010-2 Sharp Company manufactures a product for which the following standards have been set: Direct materials Direct labor Standard Quantity Standard Price Standard or Hours or Rate Cost 3 feet $11 per foot $33 2 hours ? per hour ? During March, the company purchased direct materials at a cost of $111,300, all of which were used in the production of 3,200 units of product. In addition, 4,900 direct labor-hours were worked on the product during the month. The cost of this labor time was $95,550. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $4,400 U $450 F $2,000 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. (Hint: In completing the problem, it may be helpful to move from known to unknown data either by using the columnar format shown in Exhibits 10-4 and 9 10-6 or by using the variance formulas in Exhibits 10-5 and 10-7.)