Connect x \\ Google Translate ?? M MARK2000-B-PRINCIPI x. e The Auto Repair Shop

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Connect x Google Translate ?? M MARK2000-B-PRINCIPI x. e The Auto Repair Shop 01 x ? C | https://newconnect.mheducation com/flow/connect.html ·) e Secure Chapter 10- Homework Help Saved 4 Sharp Company manufactures a product for which the following standards have been set Standard Quantity Standard Price Sta Cost s 15 or Rate or Hours 3 feet ? hours 2.5 $5 per foot Direct materials Direct labor points ? per hour Skipped During March, the company purchased direct materials at a cost of $54.285, all of which were used in the production of 3,200 units of product. In addition, 4,900 direct labor-hours were worked on the product du The following variances have been computed for the month: eBook References Materials quantity variance Labor spending variance Labor efficiency variance 1,358 U $ 3,380 U $ 850 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 omplete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Next Mc Graw Hill Prey 4 of 4

Explanation / Answer

Solution 1:

Material quantity variance = 1350 U

(SQ - AQ) * SP = -1350

(3200*3 - AQ) * $5 = -$1,350

Actual quantity of material (AQ) = 9870 feet

Actual cost per foot of material = Actual cost of material / Actual quantity of material = $54,285 / 9870 = $5.50 per foot

Material price variance = (SP - AP) * AQ = ($5 - $5.50) * 9870 = $4,935 U

Solution 2:

Labor spending variance = $3,300 U

Labor efficiency variance = $850 U

Labor rate variance = $3300 - $850 = $2450 U

Actual rate of direct labor = $44,100 / 4900 = $9 per hour

Actual hours of direct labor = 4900 hours

Labor rate variance = -2450

(SR - AR) * AH = -$2,450

(SR - $9)*4900 = -$2,450

SR = $8.50 per hour

Labor efficiency variance = -$850

(SH - AH) * SR = -$850

(SH - 4900)*$8.50 = -$850

Standard hours allowed for months production = 4800 hours

standard hours allowed per unit of product = 4800/3200 = 1.5 hour per unit

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