Sharp Company manufactures a product for which the following standards have been set:
Standard Quantity of Hours Standard Price or Rate Standard Cost
Direct materials 3 feet $ 11 per foot $ 33
Direct labor ? hours ? per hour ?
During March, the company purchased direct materials at a cost of $111,300, 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 $95,550. The following variances have been computed for the month:
Materials quantity variance $ 4,400 U
Labor spending variance $ 450 F
Labor efficiency variance $ 2,000 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.