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