Question

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 $49,170, all of which were used in 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 this labor time was $36,000. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 3,450 U $ 3,000 U $ 750 U

Answer 1

D Q: Sharp Company manufactures a product which of the following Sol Shorp company pur chesed direct metesi - all Cost $ 49,170 All production & 2,750 units Direct laboo hours were worked = $ 4500 cost of labor time $ 36,000 meterials Quantity variance (AQ Used std Qly Allowed ) X SR (x - 2750X)x5 = 3,450 0 15% - 41250) 41250) = 3,4 500 = (34 50+ 41250)15 X 894011 ماه.4 actual cost per boot of materials 49,170 / 8940 Actual cost 505 per foot answer ble meterials price variance ( (Actual rate - standerd rate) & A Q Purchased (5.5 - 5) x 8940 4470 clans

spending variance = 3,450+4470 =7920 & ab standed direct laborrate: 3,000 labour spending varian 750 labor efficiente varian 2250 tobor price varian = 2250 labor rate varian (Actual rate standard rate) x Actual h ours. (36000 X * 4500) = 2250 À =(36000 - 2250)/4500 Standard howers 7.5 per hour by standerd allowed hour month production Standerd hours = loboy effiency variance (Actual hours - Standard hours allowed) x standard rate (4 500 - *) 7.5 = 750 33450 -7X = 750 (33750 - +50)7+ Standard hours allowed 4714.2 hours

cy The Standard hours allowed per unit stan dard hours allowed 4714.2 /2750 standard allowed per unit of product hours per unit. 1.7 Product hour unit.