Sign Up

Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.

Have an account? Sign In

Have an account? Sign In Now

Sign In

Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.

Sign Up Here

Forgot Password?

Don't have account, Sign Up Here

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Have an account? Sign In Now

You must login to ask question.(5)

Forgot Password?

Need An Account, Sign Up Here

Please briefly explain why you feel this question should be reported.

Please briefly explain why you feel this answer should be reported.

Please briefly explain why you feel this user should be reported.

Sign InSign Up

ITtutoria

ITtutoria Logo ITtutoria Logo

ITtutoria Navigation

  • Python
  • Java
  • Reactjs
  • JavaScript
  • R
  • PySpark
  • MYSQL
  • Pandas
  • QA
  • C++
Ask A Question

Mobile menu

Close
Ask a Question
  • Home
  • Python
  • Science
  • Java
  • JavaScript
  • Reactjs
  • Nodejs
  • Tools
  • QA
Home/ Questions/Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Sta...
Next
Answered
kttutoria
  • 25
kttutoriaExpert
Asked: April 10, 20222022-04-10T07:12:03+00:00 2022-04-10T07:12:03+00:00In: Accounting

Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Sta…

  • 25

. Advertisement .

..3..

 

. Advertisement .

..4..

Sharp Company manufactures a product for which the following standards have been set:

......... ADVERTISEMENT .........

..8..

During March, the company purchased direct materials at a cost of $55,650, 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 $36,750. The following variances have been computed for the month:

......... ADVERTISEMENT .........

..8..

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.

For direct materials, compute the actual cost per foot of materials for March. (Round your answer to 2 decimal places.)

1.A

Actual cost per foot

For direct materials, compute the price variance and the spending variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values.)

1.B

Price variance
Spending variance

2a. For direct labor, compute the standard direct labor rate per hour. (Round your answer to the nearest whole dollar.)

2b. For direct labor, compute the standard hours allowed for the month’s production. (Do not round your intermediate value.)

2c. For direct labor, compute the standard hours allowed per unit of product. (Round your answer to 1 decimal place.)

......... ADVERTISEMENT .........

..8..


♦ Relevant knowledge
Ratio of manufacturing costs = Production cost / Direct labour cost x 100

The ratio of direct wages to factory costs is generally calculated based on past experience. Work is then calculated based on this ratio. Let’s say that the factory costs are Rs 30,000 and the direct wages in the factory are Rs 60,000. This would give 50 percent of direct wages to factory costs. The factory costs for next year will be 50% of direct wages.

Direct Labor Cost (or Direct Labor Cost) is a part of a payroll bill that covers an expense related to the production of a product or the provision or delivery of a service. some.

Direct labor cost=working time x salary

costlabor
  • 2 2 Answers
  • 337 Views
  • 0 Followers
  • 0
Answer
Share
  • Facebook
  • Report

2 Answers

  • Voted
  • Oldest
  • Recent
  • Random
  1. Best Answer
    kttutoria Expert
    2022-04-17T06:15:22+00:00Added an answer on April 17, 2022 at 6:15 am

    1.

    Materials quantity variance =(Actual quantity-Standard quantity)*Standard price
    4,500 =[Actual quantity-(3,200*3)]*$5

    Actuai quantity- 9,600 = $4,500/$5

    Actual quantity – 9,600 =900

    Actual quantity =9,600 + 900

    Actual quantity =10,500 feet

    Actual cost per foot= $55,650/10,500
    Actual cost per foot= $5.3 per foot.

    Material price variance = (Actual price-Standard price)*Actual quantity
    Material price variance = ($5.3-$5)*10,500.
    Material price variance = $3,150 Unfavorable

    Material Spending variance =( Actual price*Actual Quantity)- (Standard Price*Standard Quantity)
    Material spending variance = ($5.3*10,500)-($5*9,600))
    Material spending variance = $55,650-$48,000.

    Material spending variance = $7,650 Unfavorable

    2)

    Labor rate variance = Labor spending variance – Labor efficiency variance
    Labor rate variance = $3,150 – $700,

    Labor rate variance =$2,450 Unfavorable

    Labor rate variance = (Actual rate*Actual hours)- (Standard rate*Actual hours)
    $2,450 =Actual labor cost -(Standard rate*4,900)

    Standard rate*4,900 = $36,750-$2,450

    Standard rate*4,900 = $34,300

    Standard rate = $34,300/4,900

    Standard direct labor rate = $7 per hour

    Labor efficiency variance = (Actual hours – Standard hours)*Standard rate
    $700 = (4,900-Standard hours)*$7

    4,900-Standard hours = $700/$7

    4.900-Standard hours =100

    Standard hours =4,900 -100

    Standard hours allowed for the month’s production =4,800 hours

    Standard hours allowed per unít of product =4,800/3,200
    Standard hours allowed per unit of product = 1.5 hours

    • 22
    • Reply
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
      • Report
  2. tonytutoria
    2022-04-10T07:16:34+00:00Added an answer on April 10, 2022 at 7:16 am


    Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Sta...


    Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Sta...

    1) Materials quantity variance (Actual quantity-Standard quantity)*Standard price 4,500 [Actual quantity-(3,200*3)]*$5 Actual quantity -9,600 $4,500/$5 Actual quantity – 9,600 900 Actual quantity = 9,600+900 Actual quantity 10,500 feet Actual cost per foot $55,650/10,500 Actual cost per foot $5.3 per foot Material price variance (Actual price-Standard price) Actual quantity Material price variance ($5.3-$5)*10,500 Material price variance $3,150 Unfavorable Material Spending variance (Actual price Actual Quantity) (Standard Price*Standard Quantity) Material spending variance ($5.3*10,500)- ($5*9,600) Material spending variance $55,650-$48,000 Material spending variance $7,650 Unfavorable
    2) Labor rate variance – Labor spending variance – Labor efficiency variance Labor rates variance $3,150-$700 Labor rate variation $2,450 Unfavorable (Actual rate*Actual hour) Standard rate*4,900 Standard rate*3,450 Standard rate*4,900 Standard rate*3,300 Standard rate*4,900 Standard rate*4,900 Standard rate*3,300 Standard rate*4,900 Standard rate*4,900 Standard rate*4,900 Standard rate*3,300 Standard rate*4,900 Standard rate*4,900 Standard rate*4,800-Sta product)/Stan average of 100 Standard hours per product unit =4,800/Stankle Standard hours per product =1.54800 Standard hours per product unit =4,800 Standard hours per product unit =3,200/Still hours per product unit =3,200 Standard hours per product unit =3,300/Stank hours per unit of the product =3,200/Stor per unit of 4800/Stan hour per unit of products =4,900/$7,300 Standard hours per unit of each unit of product =3200/Ston per unit =3200/Staktual hours per unit =3200 =1.5-hours per unit =1.5
    • 24
    • Reply
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
      • Report

Leave an answer
Cancel reply

You must login to add an answer.

Forgot Password?

Need An Account, Sign Up Here

Sidebar

Ask A Question
  • How to Split String by space in C++
  • How To Convert A Pandas DataFrame Column To A List
  • How to Replace Multiple Characters in A String in Python?
  • How To Remove Special Characters From String Python

Explore

  • Home
  • Tutorial

Footer

ITtutoria

ITtutoria

This website is user friendly and will facilitate transferring knowledge. It would be useful for a self-initiated learning process.

@ ITTutoria Co Ltd.

Tutorial

  • Home
  • Python
  • Science
  • Java
  • JavaScript
  • Reactjs
  • Nodejs
  • Tools
  • QA

Legal Stuff

  • About Us
  • Terms of Use
  • Privacy Policy
  • Contact Us

DMCA.com Protection Status

Help

  • Knowledge Base
  • Support

Follow

© 2022 Ittutoria. All Rights Reserved.

Insert/edit link

Enter the destination URL

Or link to existing content

    No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.