1a) Material quantity variance = (Standard qty-actual qty)Standard price
-3150 = (2350*3*5-5X)
5X = 35250+3150
X(actual foot) = 7680
Actual cost per foot = 44160/7680 = 5.75
1b) Material price variance = (5-5.75)*7680 = 5760 U
Material spending variance = (2350*15-44160) = 8910 U
2a) Labor rate variance = 3100-700 = 2400 U
Labor rate variance = (Standard rate-actual rate)actual hour
-2400 = (X*4800-36000)
-4800X = -33600
X(Standard rate) = 7
2b) Labor efficiency variance = (Standard hour-actual hour)Standard rate
-700 = (X*7-4800*7)
-7X = -32900
x(Standard hour) = 4700 Hour
2c) Standard hour per unit = 4700/2350 = 2 hour per unit
Sharp Company manufactures a product for which the following standards have been set: Direct materials Direct...
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Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials 3 feet $5 per foot $ 15 Direct labor 7 hours 7 per hour ? During March, the company purchased direct materials at a cost of $52,740, all of which were used the production of 2,750 units of product. In addition, 4,500 direct labor-hours were worked on the product during the month. The cost of...
Sharp Company manufactures a product for which the following standards have been set Standard Quantity or Hours 3 feet ? hours Standard Price or Rate $5 per foot ? per hour Standard Cost $15 Direct materials Direct labor During March, the company purchased direct materials at a cost of $43,335, all of which were used in the production of 2,425 units of product. In addition, 4,000 direct labor-hours were worked on the product during the month. The cost of this...
Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard or Hours or Rate Cost 3 feet $5 per foot $ 15 ? hours ? per hour Direct materials Direct labor During March, the company purchased direct materials at a cost of $45,375, all of which were used in the production of 2,350 units of product. In addition, 4,800 direct labor-hours were worked on the product during the month. The cost of...
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