Sharp Company manufactures a product for which the following standards have been set:
|Direct materials||3||feet||$||5||per foot||$||15|
|Direct labor||?||hours||?||per hour||?|
During March, the company purchased direct materials at a cost of $52,965, all of which were used in the production of 2,920 units of product. In addition, 4,500 direct labor-hours were worked on the product during the month. The cost of this labor time was $31,500. The following variances have been computed for the month:
|Materials quantity variance||$||4,350||U|
|Labor spending variance||$||3,030||
|Labor efficiency variance||$||780||
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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