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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
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: 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: 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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