Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard...
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Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price or or Hours Rate Standard Cost $ 15 $5 per foot 3 feet hours 7 ? per hour: ? Direct materials Direct labor During March, the company purchased direct materials at a cost of $44,160, all of which were used in the production of 2,350 units of product. In addition, 4,800 direct labor-hours were worked on the product during the month. The cost of this labor time was $36,000. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 3,150 U $ 3,100 U $ 700 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 or or Hours Rate Standard Cost $ 15 $5 per foot 3 feet hours 7 ? per hour: ? Direct materials Direct labor During March, the company purchased direct materials at a cost of $44,160, all of which were used in the production of 2,350 units of product. In addition, 4,800 direct labor-hours were worked on the product during the month. The cost of this labor time was $36,000. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 3,150 U $ 3,100 U $ 700 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.
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SOLUTION 1a To compute the actual cost per foot of materials for March we need to divide the total cost of direct materials purchased by the total qua... 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:
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