Sharp Company manufactures a product for which the following standards have been set: Standard Quantity
or HoursStandard Price
or RateStandard
Cost
Direct materials3feet$5per foot$15
Direct labor?hours ?per hour ?
During March, the company purchased direct materials at a cost of $52,305, all of which were used in the production of 3,000 units of product. In addition, 4,600 direct labor-hours were worked on the product during the month. The cost of this labor time was $43,700. The following variances have been computed for the month:
Materials quantity variance$2,550U
Labor spending variance$3,200
U
Labor efficiency variance$900
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.