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

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Sharp Company Manufactures A Product For Which The Following Standards Have Been Set Standard Quantity Standard Price S 1 (38.54 KiB) Viewed 42 times

Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard or Hours or Rate Cost 3 feet $5 per foot $ 15 ? hours ? per hour ? Direct materials Direct labor During March, the company purchased direct materials at a cost of $57,090, all of which were used in the production of 3,400 units of product. In addition, 5,200 direct labor-hours were worked on the product during the month. The cost of this labor time was $54,600. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 900 U $ 3,600 U $ 1,000 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.