alue Warranty Processing Namber Exam 4 Os 1012 150pts Due An

alue Warranty Processing Namber Exam ?4 Os 10,12) 150pts Due Ane 160 Help Seve& Exit Submi Problem 10-11 Direct Materials and Direct Labor Variances; Computations L010-1, Lo10-2) from Incomplete Date Sharp Company manufactures a pr?duact for which the following standlards have been set 25 standard gtandard Ovantity Cost or Bate ss Per Di zect materials 3 teot Dizect labor During March, the comoary puchased units of product. In addtion In addiion 4900 drect labor-hours were woked on the product during the month. The cost of hes drect matenals at a cost of $60.120, all of which were used in the production of 3,200 labor-houes were was 553.900. The following variances have been compuled for the month Nata tials quantity variance L2.100 3,500 Labor etti eney var Required n Compute the actual cost per fook of b Corone the price var??nce and the spending variance materls for March daect lsbr a. Compute the standard direct labor rate per hour standard hours alowed per unt f product Complete this question by entering your anwers in the tabs

Solution

1(a) MQV = Standard Price ( Standard Quantity- Actual Quantity) -$2,100 = $5((3X3200)-AQ) -$2,100 = $5(9600-AQ) -$2,100 = 48000-5AQ AQ = (48000+2100)/5=10020 Actual Cost per Foot = Actual Price /Actual Quantity = $60120/10020 = $6.00 1((b) MPV = (Standard Price- Actual price)*Actual Quantity = ($5-$6)*10020 = 10020 Unfavourable Mat. Spending Var. = MQV+MPV = (-2100)+ (- 10020) = $12120 Un Fav 2(a) Labour Sepnding Var. = LRV+ LEV ($3,500) = LRV+($1050) LRV = ($2,450) LRV = (Stand Rate-Actual Rate)* Actual Hour $2,450 = (SR X 4900 Hour)- $53900 $2,450 = 4900 SR- $53900 SR (53900+2450)/4900= $11.50 2(b)LEV = (Stand. Hour- Actual Hour)* SR ($1,050) = (SH-4900)$11.50 -1050 = 11.50 SH - 56350 SH = (56350-1050)/11.50= 4808.70 Hour