just answer req 1b (spending variance) Google Translate x?G The Auto Repair Shop

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just answer req 1b (spending variance)

Google Translate x?G The Auto Repair Shop Oxy ea Connec x M1 MARK2000-B-PRINCIPI C Secure https://newconnect.mheducation.com/flow/connect.html Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate comple 4 Sharp Company manufactures a product for which the following standards have been set Standard Quantity Standard Price Standard Hours or Rate $5 per foot ?per hour Cost s 15 2.5 Direct materials Direct labor 3 feet points hours 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 during the month. The cost of this labor time was $44,100 The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance s 1,350U 3,300 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 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Mc Graw Hill K Prev Ne

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

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

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

b. Material spending variance = Material price variance + Material quantity variance = $1,350 U + $4,935 U = $6,285 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

a. SR = $8.50 per hour

Labor efficiency variance = -$850

(SH - AH) * SR = -$850

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

b. Standard hours allowed for months production = 4800 hours

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

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