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20 min. Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass.

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20 min. Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $14.40 Standard labor time per unit Standard number of lbs. of brass 1.4 lbs. Standard price per lb. of brass $11.75 Actual price per lb. of brass $12.00 Actuallbs. of brass used during the week 10,382 lbs. Number of units produced during the week 7,200 Actual wage per hour $14.83 Actual hours for the week (40 employees x 35 hours) 1,400 Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit 16.45 Direct labor standard cost per unit 4.8 Total standard cost per unit 21.25 b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance -2,596 Favorable X Direct Materials Quantity Variance 3,548 Favorable X Total Direct Materials Cost Variance -6,144 X Favorable X c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance -602X Favorable X Direct Labor Time Variance 14,400 X Unfavorable X Total Direct Labor Cost Variance 13,798 Unfavorable X

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