9 Problem 10-11 (Algo) Direct Materials and Direct Labor Variances; Computations from Incomplete Data [LO10-1, LO10-2) Sharp Company manufactures a product for which the following standards have been set: 1.12 points Direct materials Direct labor Standard Quantity Standard Price Standard or Hours or Rate Cost 3 feet $5 per foot $ 15 ? hours ? per hour 2 eBook During March, the company purchased direct materials at a cost of $53,730, 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: CO Hint A Print Materials quantity variance Labor spending variance Labor efficiency variance $1,650 U $ 3,100 V $ 750 U References 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. Exercise 10-1 (Algo) Direct Materials Variances (LO10-1) 1 1 Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,500 helmets, using 2,520 kilograms of plastic. The plastic cost the company $19,152. 1.11 points According to the standard cost card, each helmet should require 0.63 kilograms of plastic, at a cost of $8.00 per kilogram. eBook Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,500 helmets? 2. What is the standard materials cost allowed (SQ * SP) to make 3,500 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? GOA Hint (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) Print 1. References 2. 3. Standard quantity of kilograms allowed Standard cost allowed for actual output Materials spending variance Materials price variance Materials quantity variance 4. Exercise 10-2 (Algo) Direct Labor Variances (LO10-2] 2 Sky Chefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 3,400 of these meals using 1,300 direct labor- hours. The company paid its direct labor workers a total of $16,900 for this work, or $13.00 per hour. 1.11 points According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $12.00 per hour. eBook Required: 1. What is the standard labor-hours allowed (SH) to prepare 3,400 meals? 2. What is the standard labor cost allowed (SH SR) to prepare 3,400 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? Hint (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) Print 1. References 2 3. Standard labor-hours allowed Standard labor cost allowed Labor spending variance Labor rate variance Labor efficiency variance 4