Sharp Company manufactures a product for which the following standards have been

Question

Sharp Company manufactures a product for which the following standards have been set:

     During March, the company purchased direct materials at a cost of $60,450, all of which were used in the production of 3,440 units of product. In addition, 4,900 hours of direct labor time were worked on the product during the month. The cost of this labor time was $41,550. The following variances have been computed for the month:

Compute the actual cost per foot for materials for March. (Round your answer to 2 decimal places.)

Compute the price variance and the spending variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance))

Compute the standard direct labor rate per hour. (Do not round intermediate calculations.)

Compute the standard hours allowed for the month’s production.

Compute the standard hours allowed per unit of product. (Round your answer to 1 decimal place.)

Sharp Company manufactures a product for which the following standards have been set:

Explanation / Answer

Particulars Standard Actual Qty Rate amount Qty Rate amount Materials      10,320.00           5.00          51,600.00      10,500.00            5.76          60,450.00 Labour        5,146.90      8.4245          43,360.01        4,900.00            8.48          41,550.00 Actual output        3,440.00 Materials reqd(3440*3)      10,320.00 Actual Cost per foot = 60450/10500 = $5.76 DMQV= (SQ-AQ)SP -900 = (10320-AQ)5 -180 = 10320-AQ AQ = 10500 DMPV = (SP-AP)*AQ DMPV = (5-5.76)10500 DMPV = 7950 U Materials Spending Var = Std cost- Actual cost Materials Spending Var = 51,600 - 60,450 Materials Spending Var = 8,850 U DLRV= (SR-AR)AH -270= (SR-8.48)4900 -.06 = SR-8.48 SR = 8.42            4,653.10 DLEV = (SH-AH)SR 2080 = (SH-4900)8.4245 246.90 = SH-4900 SH = 5,146.90 Hours Std No of hours        5,146.90 Actual Output        3,440.00 Std hrs per unit                 1.50

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