10 Sharp Company manufactures a product for which the following standards have b
ID: 2535653 • Letter: 1
Question
10 Sharp Company manufactures a product for which the following standards have been set dard Quantity Standard Price or Rate $ 5 per foot tandard cost s 15 irect material: Direct labor feet ? per hour 0412 25 ny purchased direct materials at a cost of $49170, all of which were used in the production of 2.750 units of $36,000 was The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance S 3,450 U S 3,080 U S 750 u eBook Print Required: 1. For direct materials a. Compute the actual cost per foot of materials for March Referencesb Compute the price varlance 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 1B |1 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 1BExplanation / Answer
Std price per foot: $ 5 Std qty required per unit of ouotput: 3 feet Std qty allowed for actual output (2750*3): 8250 foot Actual Material cost: $ 49170 Std Quantity variance: Std price (Std qty -Actual Qty) 3450 U: 5.00 (8250 -Actual Qty) Actual Qty: 8940 foot Actual price (49170/8940): $ 5.50 per foot Material price variance: Actual qty (Std price-Actual price) 8940 (5.00-5.50) = $4470 Unfav Material Sepending variance: Std qty*Std price -Actual material cost incurred 8250*5 - 49170 = $ 7920 Unfav Actual Hours: 4500 labour hours Actual rate per hour (36000/4500): $ 8.00 per hour Labour rate variance: Labour spending-Labour Efficiency variance= 3000-750 =$ 2250 U Labour rate variancec: Actual hours (Std rate-Actual rate) 2250 U = 4500 (Std rate -8.00) Std rate per hour = 7.50 per hour Labbour efficiency variance: Std rate (Std hours-Actual hours) 750 U: 7.50 (Std horus - 4500) St hours allowed for actual output: 4400 hours Std hour allowed per unit of output: (4400/2750)= 1.60 hour per unit
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