Question
In: Accounting
Problem 10-11 Direct Materials and Direct Labor Variances; Computations from Incomplete Data [LO10-1, LO10-2] Sharp Company...
Problem 10-11 Direct Materials and Direct Labor Variances; Computations from Incomplete Data [LO10-1, LO10-2]
Sharp Company manufactures a product for which the following standards have been set:
|
Standard Quantity or Hours |
Standard Price or Rate |
Standard Cost |
||||||
| Direct materials | 3 | feet | $ | 5 | per foot | $ | 15 | |
| Direct labor | ? | hours | ? | per hour | ? | |||
During March, the company purchased direct materials at a cost of $57,510, all of which were used in the production of 3,125 units of product. In addition, 5,100 direct labor-hours were worked on the product during the month. The cost of this labor time was $51,000. The following variances have been computed for the month:
| Materials quantity variance | $ | 1,050 | U |
| Labor spending variance | $ | 3,500 |
U |
| Labor efficiency variance | $ | 950 |
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.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Problem 10-11 Direct Materials and Direct Labor Variances; Computations from Incomplete Data [LO10-1, LO10-2] Sharp Company...
Problem 10-11 Direct Materials and Direct Labor Variances;
Computations from Incomplete Data [LO10-1, LO10-2]
Sharp Company manufactures a product for which the following
standards have been set:
Standard Quantity
or Hours
Standard Price
or Rate
Standard
Cost
Direct materials
3
feet
$
5
per foot
$
15
Direct
labor
?
hours
?
per hour
?
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....
Problem 10-11 Direct Materials and Direct Labor Variances; Computations from Incomplete Data [LO10-1, LO10-2] Sharp Company...
Problem 10-11 Direct Materials and Direct Labor Variances;
Computations from Incomplete Data [LO10-1, LO10-2]
Sharp Company manufactures a product for which the following
standards have been set:
Standard Quantity
or Hours
Standard Price
or Rate
Standard
Cost
Direct
materials
3
feet
$
5
per foot
$
15
Direct labor
?
hours
?
per hour
?
During March, the company purchased direct materials at a cost
of $45,240, all of which were used in the production of 2,190 units
of product....
Problem 10-11 Direct Materials and Direct Labor Variances; Computations from Incomplete Data [LO10-1, LO10-2] Sharp Company...
Problem 10-11 Direct Materials and Direct Labor Variances;
Computations from Incomplete Data [LO10-1, LO10-2]
Sharp Company manufactures a product for which the following
standards have been set:
Standard Quantity
or Hours
Standard Price
or Rate
Standard
Cost
Direct materials
3
feet
$
5
per foot
$
15
Direct
labor
?
hours
?
per hour
?
During March, the company purchased direct materials at a cost
of $44,100, all of which were used in the production of 2,350 units
of product....
Problem 9-25 Direct Materials and Direct Labor Variances; Computations from Incomplete Data [LO9-4, LO9-5] Sharp Company...
Problem 9-25 Direct Materials and Direct Labor Variances;
Computations from Incomplete Data [LO9-4, LO9-5]
Sharp Company manufactures a product for which the following
standards have been set:
Standard Quantity
or Hours
Standard Price
or Rate
Standard
Cost
Direct materials
3
feet
$
5
per foot
$
15
Direct labor
?
hours
?
per hour
?
During March, the company purchased direct materials at a cost
of $56,610, all of which were used in the production of 2,875 units
of product....
Problem 9-25 Direct Materials and Direct Labor Variances; Computations from Incomplete Data [LO9-4, LO9-5] Sharp Company...
Problem 9-25 Direct Materials and Direct Labor Variances;
Computations from Incomplete Data [LO9-4, LO9-5]
Sharp Company manufactures a product for which the following
standards have been set:
Standard Quantity
or Hours
Standard Price
or Rate
Standard
Cost
Direct materials
3
feet
$
5
per foot
$
15
Direct labor
?
hours
?
per hour
?
During March, the company purchased direct materials at a cost
of $57,510, all of which were used in the production of 3,125 units
of product....
Problem 9-25 Direct Materials and Direct Labor Variances; Computations from Incomplete Data [LO9-4, LO9-5] Sharp Company...
Problem 9-25 Direct Materials and Direct Labor Variances;
Computations from Incomplete Data [LO9-4, LO9-5]
Sharp Company manufactures a product for which the following
standards have been set:
Standard Quantity
or Hours
Standard Price
or Rate
Standard
Cost
Direct materials
3
feet
$
5
per foot
$
15
Direct labor
?
hours
?
per hour
?
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....
Exercise 10-8 Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Dawson Toys, Ltd., produces a toy...
Exercise 10-8 Direct Materials and Direct Labor Variances
[LO10-1, LO10-2]
Dawson Toys, Ltd., produces a toy called the Maze. The company
has recently established a standard cost system to help control
costs and has established the following standards for the Maze
toy:
Direct materials: 7 microns per toy at $0.30 per micron
Direct labor: 1.3 hours per toy at $6.50 per hour
During July, the company produced 5,000 Maze toys. The toy's
production data for the month are as follows:...
1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. Give...
1.
Show computations of price and efficiency variances for direct
materials and direct manufacturing labor. Give a plausible
explanation of why each variance occurred.
2.
Suppose 7,200
square yards of materials were purchased (at $5.10
per squareyard), even though only 4,900
square yards were used. Suppose further that variances are
identified at their most timely control point; accordingly, direct
materials price variances are isolated and traced at the time of
purchase to the purchasing department rather than to the production...
Direct Materials and Direct Labor Variances
The following information is for the standard and actual costs for the Happy Corporation.Standard Costs:Budgeted units of production - 16,000 (80% of capacity)Standard labor hours per unit - 4Standard labor rate - $26 per hourStandard material per unit - 8 lbs.Standard material cost - $ 12 per poundStandard variable overhead rate - $15 per labor hourBudgeted fixed overhead - $640,000Fixed overhead rate is based on budgeted labor hours at 80% capacity.Actual Cost:Actual production - 16,500 unitsActual material purchased and used...
Exercise 10-2 Direct Labor Variances [LO10-2] SkyChefs, Inc., prepares in-flight meals for a number of major...
Exercise 10-2 Direct Labor Variances [LO10-2]
SkyChefs, Inc., prepares in-flight meals for a number of major
airlines. One of the company’s products is grilled salmon in dill
sauce with baby new potatoes and spring vegetables. During the most
recent week, the company prepared 6,600 of these meals using 1,950
direct labor-hours. The company paid its direct labor workers a
total of $27,300 for this work, or $14.00 per hour.
According to the standard cost card for this meal, it should...
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