Question & Answer: 6 value: 10.00 points Sharp Company manufactures a product for which the following standards have been set: Standard…..

Who said that learning must be a struggle?. Enjoy stress-free learning today!
Calculate your order
Pages (275 words)
Standard price: $0.00
So much stress and so little time? Our premium writers got you covered.
So much stress and so little time? Our premium writers got you covered.

6 value: 10.00 points Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard or Hours 3 feet ? hours Cost $15 or Rate Direct materials Direct labor $5 per foot ? per hour During March, the company purchased direct materials at a cost of $42,660, all of which were used in the production of 2,250 units of product. In addition, 4,600 hours of direct labor time were worked on the product during the month. The cost of this labor time was $34,500. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $1,800 U $3,000 U $ 700 U Required 1. For direct materials: a. Compute the actual cost per foot for materials for March. (Round your answer to 2 decimal places.) cost per foot b. 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)) Price variance Spending variance

6 value: 10.00 points Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard or Hours 3 feet ? hours Cost $15 or Rate Direct materials Direct labor $5 per foot ? per hour During March, the company purchased direct materials at a cost of $42,660, all of which were used in the production of 2,250 units of product. In addition, 4,600 hours of direct labor time were worked on the product during the month. The cost of this labor time was $34,500. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $1,800 U $3,000 U $ 700 U Required 1. For direct materials: a. Compute the actual cost per foot for materials for March. (Round your answer to 2 decimal places.) cost per foot b. 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)) Price variance Spending variance

Expert Answer

 

1.a.For Direct materials

Units produced=2250

Standard quantity=3*2250=6750 feet

Standard Cost=6750*5=$33,750

Actual Cost=$42,660

Material Cost Variance=(42660-33750)=$8,910 U

SQ=Standard Quantity required

AQ=Actual Quantity used

SP=Standard price per unit

AP=Actual price per unit

Material cost Variance=SQ*(SP-AP)+AP* (SQ-AQ)=-8910

SQ=6750

SP=$5

6750*(5-AP)+AP*(SQ-AQ)=-8910

Materials Quantity Variance=AP*(SQ-AQ)

Materials Quantity Variance=$1,800 U

AP*(SQ-AQ)=-1800

6750(5-AP)-1800=-8910

6750(5-AP)=-8910+1800=-7110

5-AP=-7110/6750=-1.05333

AP=5+1.05333=$6.0533

AP=$6.05 per feet

Actual cost per foot of material=$6.05

Actual cost per foot of material $6.05

b. Price variance and spending variance:

Price Variance= SQ*(SP-AP)

 

 

So much stress and so little time? We’ve got you covered. Get your paper proofread, edited or written from scratch within the tight deadline.

Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.
25+ Subjects
From Literature to Law – we have MA and Ph.D. experts in almost any academic discipline, for any task.
Any Paper
We can write, proofread, paraphrase, format, edit or rewrite your any paper, whether it’s a review or a term paper.
High Quality
All the papers we deliver to clients are based on credible sources and are quality-approved by our editors.
Fast Turnaround
Our writers can complete a standard essay for you within 1-3 hours and a part of a dissertation – in 2-5 days.
High Quality
All the papers we deliver to clients are based on credible sources and are quality-approved by our editors.
Next
Why Customers
Become Our Regulars
We put decades of writing experience to work for you and are passionate about helping you succeed. Let the figures tell our story!
10
Years in Writing Business
97%
Orders Delivered on Time
3,500+
Experts on Our Team
9/10
Report Better Grades
Timeliness
The paper was done to my satisfaction. Thnk you.
Paper was late
Good work, professional and beat the deadline. Thank you so very much
Job done to satisfaction. Thank you!
That's Why We Are Here 24/7
We are proud to say that we've scored a
96% customer satisfaction rate.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Get that paper done in two clicks.
Our premium writers got you covered!
Who said learning must be a struggle? Enjoy stress-free learning today.