Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Item3 45points Return to question Item 3 Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard

Item3

45points

Return to question

Item 3

Sharp Company manufactures a product for which the following standards have been set:

Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 3 feet $ 5 per foot $ 15
Direct labor ? hours ? per hour ?

During March, the company purchased direct materials at a cost of $45,375, 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 $50,400. The following variances have been computed for the month:

Materials quantity variance $ 2,250 U
Labor spending variance $ 3,400

U

Labor efficiency variance $ 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 months production.

c. Compute the standard hours allowed per unit of product.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

=+8.8. Suppose that S = (0,1,2 ,... ], Poo =1, and f,o>0 for all i.

Answered: 1 week ago

Question

6. Identify characteristics of whiteness.

Answered: 1 week ago

Question

e. What are notable achievements of the group?

Answered: 1 week ago