10 Check my work 2 Sharp Company manufactures a product for which the following

Question

10 Check my work 2 Sharp Company manufactures a product for which the following standards have been set Standard Quantity Standard Price Standard Direct materiale Direct labor or Hours 3 feet 2 hours or Rate Cost $5 per foot$15 ? per hour ints During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37600. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor effieiency variance $ 4,050 s 2,180 U Print 770 U ReferencesRequired: 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 Complete this question by entering your answers in the tabs below Req 1A Req 18 Req 2 For direct materials, compute the actual cost per foot of materials for March. (Round your answer to 2 decimal places.) per foot Req 18 >

Explanation / Answer

Actual output: 2875 units Std qty allowed (2875*3): 8625 Std price per feet: 5 Material Quantiity variance: 4050 U Material Quantity variance: Std price (Std quantity -Actual Quantity) ( 4050) = 5 (8625- Actual Quantity) Actual Quantity =9435 feet Actual Cost per feet: (56610/9435): $ 6 per feet Material price variance: Actual qty (Std price -Actual price) 9435 (5-6)= $ 9435 U Material Spending variance: Std Qty*Std price * Actual Qty*Actual Price 8625*5 - 9435*6 = $ 13485 U Labour spending variance: 2180 U Labor effiency variance: 770 U Labor rate variance 1410 Labor rate variance = Actual Hours*Std rate per hour   -Actual labor cost ( 1410 ) = 4700 *Std rate - 37600 Std rate per hour = 7.70 Labor efficiency variance: Std rate (Std hours-Actual hours) ($ 770) = 7.70 (Std hours-4700) Std hours = 4600 Total Std hours allowed for actual output: 4600 Actual output: 2875 units Std hours per unit of output (4600/2875): 1.6 hours

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