Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials 3 feet $5 per foot $15 Direct labor 7 hours 7 per hour During March, the company purchased direct materials at a cost of $43,335, all of which were used in the production of 2.425 units of product. In addition, 4,000 direct labor-hours were worked on the product during the month. The cost of this labor time was $28.000 The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 3,750 U $ 2,780 U $ 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. le Mickley Corporation produces two products, Alphabs and Zeta7s, which pass through two operations. Sintering and Relig Eno the products uses two raw materials--X442 and Y661. The company uses a standard cost system, with the flowing standards for each product on a per unit basis) Raw Material Standard Labor Tine Product X442 Y661 Sintering Finishing Alpha6 2.0 kilos 1.5 liters 0.10 hours 1.10 hours Zeta 3.6 kilos 4.5 Uters 0.30 hours 0.89 hours Information relating to materials purchased and materials used in production during May follows: Material X442 Y661 Purchase Purchases Cost 14,200 kilos $55,380 15,200 liters $22,880 Standard Price $3.70 per kilo $1.60 per liter Used in Production 8,700 kilos 13,200 liters The following additional information is available: a. The company recognizes price variances when materials are purchased b. The standard labor rate is $22.00 per hour in Sintering and $18.10 per hour in Finishing c. During May, 1.200 direct labor-hours were worked in Sintering at a total labor cost of $27.240, and 2,870 direct labor hours were worked in Finishing at a total labor cost of $60,270. d. Production during May was 1,700 Alphabs and 1,800 Zeto7s. Required: 1. Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor, 2. Compute the materials price and quantity variances for each material 3. Compute the labor rate and efficiency variances for each operation. Complete this question by entering your answers in the tabs below. Quality Motor Company is an auto repair shop that uses standards to control its labot time and labor cost. The standard into con for motor tune-up is given below: Standard Motor tune-up Standard Hours 2.50 Rate $31.00 Standard Cost $77.50 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shoo supervisor that 56 tune-ups were completed during the week, and the controller recalls the following variance data relating to tunecos Labor rate variance Labor spending variance $ 146 F $ 102 U Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly pay rate for tune-ups last week. (Round your answer to 2 decimal places) hours 1. Actual labor hours per hour 2. Actual hourly rate Help Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Standard Price Standard Hours or Rate Cost Direct materials 6.90 pounds $2.50 per pound $17.25 Direct labor 6.50 hours $13.5e per hour $ 6.75 During the most recent month, the following activity was recorded: a. Thirteen thousand four hundred pounds of material were purchased at a cost of $2.40 per pound b. The company produced only 1,340 units, using 12,060 pounds of material. The rest of the material purchased remained in tow materials inventory.) c. 770 hours of direct labor time were recorded at a total labor cost of $9,240. Required: Compute the materials price and quantity variances for the month. (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.) Materials price variance Materials quantity variance Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format Income statement below: Flexible Budget Actuat Sales (8,000 pools) $ 290,000 $290,00 Variable expenses Variable cost of goods solde 104,400 124.770 Variable selling expenses 20, eee 20,000 Total variable expenses 124,400 144-270 Contribution margin 165,600 125 230 Fixed expenses: Manufacturing overhead 68,000 68,000 Selling and administrative 86,000 86,000 Total fixed expenses 154,000 154,000 Net operating income (loss) $ 11,600 $ (8,770) *Contains direct materials, direct labor, and variable manufacturing overhead, Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to get things under control." Upon reviewing the plant's income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool Standard Standard Price Quantity or Standard Hours or Rate Cost Direct materials 3.6 pounds $ 2.20 per pound $ 7.92 Direct labor @.5 hours $ 7.70 per hour 3.85 Variable manufacturing overhead 0.4 hours $ 3.20 per hour 1.28 $13.05 Total standard cost per unit "Based on machine-hours. During June, the plant produced 8,000 pools and incurred the following costs: a. Purchased 33,800 pounds of materials at a cost of $2.65 per pound. b. Used 28,600 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 4,600 direct labor-hours at a cost of $7.40 per hour. d. Incurred variable manufacturing overhead cost totaling $12,600 for the month. A total of 3,500 machine-hours was recorded. Uverhead Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to "get things under control." Upon reviewing the plant's Income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool Standard Standard Price Quantity or Standard Hours or Rate Cost Direct materials 3.6 pounds $ 2.20 per pound $7.92 Direct labor 0.5 hours $ 7.70 per hour 3.85 Variable manufacturing overhead 0.4 hours $ 3.20 per hour 1.28 Total standard cost per unit $13.05 "Based on machine-hours. During June, the plant produced 8,000 pools and incurred the following costs: a. Purchased 33,800 pounds of materials at a cost of $2.65 per pound. b. Used 28,600 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be Ignored.) c. Worked 4,600 direct labor-hours at a cost of $7.40 per hour. d. Incurred variable manufacturing overhead cost totaling $12,600 for the month. A total of 3.500 machine-hours was recorded. It is the company's policy to close all variances to cost of goods sold on a monthly basis. Required: 1. Compute the following variances for June: a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month