Question
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
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 $54,615, all of which were used in the production of 3,050 units of product. In addition, 5,000 direct labor-hours were worked on the product during the month. The cost of this labor time was $30,000. The following variances have been computed for the month:
Materials quantity variance | $ 3,900 | U |
---|---|---|
Labor spending variance | $ 5,600 | U |
Labor efficiency variance | $ 600 | U |
Required:
2a. For direct labor, compute the standard direct labor rate per hour. Note: Round your answer to the nearest whole dollar. 2b. For direct labor, compute the standard hours allowed for the months production. Note: Do not round your intermediate value. 2c. For direct labor, compute the standard hours allowed per unit of product. Note: Round your answer to 1 decimal place.
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