5:021 LTE Sharp Company manufactures a product for which the following standands

Question

5:021 LTE Sharp Company manufactures a product for which the following standands have been set During March, the company purchased direct materials at a cost of $43 335 all ofwhich e used in the production were worked on the product during the month The cost of this labor time was $28,000 The units or Required 1 For direct materials a. Compute the actual cost per foot of maberiails for Manch 2. For direct labor a. Compute the standand direct labor rate per hour c Compute the standard hours allowed per unit of product Complete this question by entering your answers in the tabs below compute the For direct

Explanation / Answer

Req 1-a: Material Quantity variance: $ 3750U Std quantity perr unt: 3 feet Actual Output: 2425 units Standard quantity for actual output: (2425*3): 7275 feet Std price per unit: $ 5 per feet Material Quantity Variance: Std price (Std quantity -Actual quantity) 3750 U = 5 (7275 - Aactual Quantity) Actual Quantity = 8025 feet Actual material cost: $ 43335 Actual material cost per feet (43335/8025): $ 5.40 per feet Req 1-b: Material price variance : Actual quantity (Std price-Actual price 8025 ( 5.00 - 5.40 ) = $3210 U Req 2-a: Actual labour cost: $ 28000 Actual labour hours: 4000 hours Actual labour rate per hour (28000/4000): $7.00 per hour labour rate variance: labour spending variance-Labour efficiency variance = 2780-780= $ 2000 U labour rate variance= Actual labour hours (Std rate per hour- Actual rate per hour) $ 2000 U = 4000 (Std rate per hour - 7.00) Std rate per hour: $6.50 per hour Req 2-b: Labor Eficiency varaiance: 780 U Labour efficiency variance = Std rate per hour (Std hours -Actual hours 780U = 6.50 (Std hours allowed - 4000) Std hours allowed = 3880 hours Req 2-b: Std hours allowed: 3880 hours Actual output: 2425 units Std hours per hour (3880 /2425) = 1.6 hour per unit

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.