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$ 5per foot $15
Direct labor ?hours ?per hour ?
During March, the company purchased direct materials at a cost of $58,050, all of which were used in the production of 3,320 units of product. In addition, 4,900 hours of direct labor time were worked on the product during the month. The cost of this labor time was $39,150. The following variances have been computed for the month:
Materials quantity variance$2,700U
Labor spending variance$ 690F
Labor efficiency variance$640F
Required:
1.For direct materials:
a. Compute the actual cost per foot for materials for March. (Round your answer to 2 decimal places.)
b. Compute the price variance and the spending variance.
2.For direct labor:
a. Compute the standard direct labor rate per hour. (Do not round intermediate calculations.)
b. Compute the standard hours allowed for the month's production.
c. Compute the standard hours allowed per unit of product. (Round your answer to 1 decimal place.)