question archive Sharp Company manufactures a product for which the following standards have been set: Direct materials Direct labor Standard Quantity or Hours Standard Price or Rate Standard Cost 3 feet $ 5 per foot $ 15 ? hours ? per hour ? During March, the company purchased direct materials at a cost of $52,965, all of which were used in the production of 2,920 units of product
Sharp Company manufactures a product for which the following standards have been set: Direct materials Direct labor Standard Quantity or Hours Standard Price or Rate Standard Cost 3 feet $ 5 per foot $ 15 ? hours ? per hour ? During March, the company purchased direct materials at a cost of $52,965, all of which were used in the production of 2,920 units of product
Subject:AccountingPrice: Bought3
Sharp Company manufactures a product for which the following standards have been set: Direct materials Direct labor Standard Quantity or Hours Standard Price or Rate Standard Cost 3 feet $ 5 per foot $ 15 ? hours ? per hour ? During March, the company purchased direct materials at a cost of $52,965, all of which were used in the production of 2,920 units of product. In addition, 4,500 direct labor-hours were worked on the product during the month. The cost of this labor time was $31,500. The following variances have been computed for the month: Materials quantity variance $ 4,350 U Labor spending variance $ 3,030 v Labor efficiency variance $ 780 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.
